GDS Holdings stock price target raised to $50 from $40 at Citizens JMP

Investing.com - Citizens JMP raised its price target on GDS Holdings (NASDAQ:GDS) to $50.00 from $40.00 on Thursday, while maintaining a Market Outperform rating on the data center operator’s stock. According to InvestingPro data, GDS shares have surged nearly 130% over the past year, with analysts setting targets ranging from $29.05 to $64.50.

The price target increase follows GDS Holdings’ second-quarter 2025 results, which Citizens JMP noted were "essentially in line with expectations." The firm cited the successful launch of GDS Holdings’ C-REIT as a key factor in the target adjustment. InvestingPro analysis shows the company maintains a current market capitalization of $6.79 billion, with an EBITDA of $632.64 million in the last twelve months.

The C-REIT launch yielded a valuation of approximately 22.0x 2026E EBITDA, exceeding expectations of around 17.0x. This represents a significant premium to GDS Holdings’ current trading multiple of approximately 12.0x EBITDA. InvestingPro subscribers can access 8 additional key insights about GDS Holdings, including detailed valuation metrics and financial health scores.

Citizens JMP’s new $50.00 price target represents approximately 16.5x 2026E EBITDA, up from the previous target’s implied multiple of about 14x. The firm noted this adjustment reflects the company’s continued execution "on the mechanics recognizing greater value for existing assets."

The research firm also highlighted GDS Holdings’ international business, projecting it will likely produce more than $1.0 billion of EBITDA by 2028, with a potential valuation of 20.0x or higher.

In other recent news, GDS Holdings Ltd reported impressive financial results for the second quarter of 2025. The company delivered better-than-expected earnings, with an earnings per share (EPS) loss of $0.06, significantly outperforming the anticipated loss of $0.39. Revenue for the quarter reached $2.9 billion, surpassing the forecast of $2.83 billion. These results indicate a strong performance, with both earnings and revenue exceeding analysts’ projections. The announcement of these results has been met with positive reactions from investors. Although stock price movements are not discussed here, the financial achievements themselves are noteworthy. Such developments are likely to draw attention from various analyst firms, which often provide further insights into the company’s performance. As GDS Holdings continues to share its financial outcomes, these updates remain crucial for investors.

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