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Investing.com - Morgan Stanley has raised its price target on VNET Group Inc (NASDAQ:VNET) to $14.00 from $12.00 while maintaining an Overweight rating on the stock. The stock, currently trading at $9.63, has shown remarkable momentum with a 181.58% return over the past year. According to InvestingPro analysis, VNET appears overvalued at current levels.
The 17% increase in the price target follows strong customer move-in results reported in the second quarter of 2025, according to Morgan Stanley analyst Yang Liu.
The investment bank has increased its EBITDA estimates for VNET by 2% for both 2025 and 2026, citing that the new customer orders should strengthen investor conviction in the company’s growth outlook for those years.
Morgan Stanley also noted it has rolled its valuation forward by three months to September 2026 as part of the price target adjustment.
The new $14 price target implies an enterprise value to EBITDA multiple of 13.2x based on 2026 estimates, which Morgan Stanley indicates is largely in line with private REIT valuations.
In other recent news, VNET Group Inc. reported its second-quarter earnings for 2025, which revealed a significant miss on earnings per share (EPS). The company posted an EPS of -$0.06, falling short of the expected $0.11, resulting in a negative surprise of 154.55%. However, VNET exceeded revenue expectations, reporting $2.43 billion compared to the forecasted $2.3 billion, marking a 5.65% positive surprise. In another development, VNET secured a 40-megawatt data center order from a leading internet company for its new Gu’an IDC Campus in the Greater Beijing Area. This project will be delivered in phases to support the customer’s core operations. Additionally, Jefferies raised its price target for VNET Group to $25.13 from $24.23, maintaining a Buy rating and considering the company a "Top Pick" despite some near-term pressures. These developments provide investors with a mix of both challenges and opportunities for VNET Group.
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