CI-GDS @EC2602A(13167.HK)

GDS Holdings ADR clears technical benchmark, hitting 90-plus RS rating

GDS Holdings ADR shows improving price performance, earning an upgrade to its IBD Relative Strength Rating.

Morgan Stanley raises the target price of GDS and Vnet, rating "Overweight"

Morgan Stanley's report indicates that the AI data center deployments of hyperscale operators will tilt towards remote areas, with expectations for healthier supply-demand dynamics and stable return prospects. Morgan Stanley has upgraded GDS's rating to "Overweight," raising the target price from $54 to $64, due to its strategic transformation and resource development progress in the Chinese market. At the same time, Vnet's rating is also "Overweight," with the target price raised from $14 to $16. Morgan Stanley has identified five leading suppliers positioned in remote areas, expecting their new order acquisition in the AI era to outperform their peers

The NASDAQ Golden Dragon China Index preliminarily closed up about 2.2%. Among popular Chinese concept stocks, Baidu rose 8%, Century Internet rose 7.4%, GDS rose 6.1%, KINGSOFT CLOUD rose 4.6%, WeRide rose 4.3%, Alibaba rose 3.9%, YUM CHINA rose 2.7%, and Pinduoduo rose 1.4%. In terms of ETFs, CQQQ rose 3.4%, ASHS rose 2.3%, and KWEB rose 1.7%

The Hang Seng Index closed down 1.05%, and the Hang Seng Tech Index fell 1.24%

Zhihu fell 10.4%, Bilibili fell 6.85%, GDS fell 5.21%, Alibaba fell 3.49%. Hua Hong Semiconductor fell 3.93%, SMIC fell 2.78%

GDS (NASDAQ:GDS) Stock Price Down 5% - What's Next?

GDS Holdings (NASDAQ:GDS) shares fell 5% to $41.2150, with trading volume down 70% from average levels. Analysts have mixed ratings, with TD Cowen lowering its target price to $37.00, while UBS set a target of $55.00. GDS reported $0.45 EPS, exceeding estimates, and revenue of $405.28 million, up 10.2% year-over-year. Hedge funds hold 33.71% of shares. GDS specializes in data center services in China, catering to cloud providers and financial institutions.