Procore signs multi-year strategic collaboration agreement with AWS
Investing.com - TD Cowen maintained its buy rating and $38.00 price target on GDS Holdings (NASDAQ:GDS) stock on Friday, positioning the company as a beneficiary of artificial intelligence data center expansion in Asia. The stock has shown remarkable momentum, delivering a 210% return over the past year and 14.69% year-to-date, according to InvestingPro data.
The research firm identified GDS as a "Best Smidcap Idea" for investors looking to capitalize on the growing data center market in the Asia-Pacific region, particularly as AI infrastructure demands increase.
TD Cowen highlighted GDS’s market leadership in China as a key advantage that positions the company to capture rising AI data center demand from Chinese hyperscalers.
The firm’s analysis suggests GDS remains undervalued compared to its U.S. peers, with potential for both growth and multiple expansion as the company leverages its hyperscale-focused operations across China and Southeast Asia.
TD Cowen’s unchanged $38 price target derives from a discounted cash flow model using a 15.0x terminal multiple applied to 2030 estimated EBITDA, discounted at an 8.7% weighted average cost of capital.
In other recent news, GDS Holdings Ltd has completed a significant $550 million convertible notes offering, with proceeds aimed at supporting strategic investments and acquisitions. The company also closed an offering of American Depositary Shares (ADS) to enhance its financial flexibility. Analysts have been active in their assessments, with Jefferies adjusting its price target for GDS Holdings to $37.32, maintaining a Buy rating despite the change. Meanwhile, JMP analysts have upheld a Market Outperform rating with a $40 price target, citing strong first-quarter 2025 results and expansion plans.
Nomura/Instinet initiated coverage with a Buy rating and a $35.80 price target, highlighting GDS’s potential in the AI inferencing market. The company’s recent filing with the SEC includes financial statements and updated risk factors, providing transparency for investors. GDS Holdings plans to expand its capacity by 900 megawatts in China and 700 megawatts internationally, reflecting a positive outlook for future growth. These developments indicate a strategic focus on strengthening market position and operational capabilities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.