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VNET Group stock price target raised to $25.13 from $24.23 at Jefferies

Published 22/08/2025, 08:46
VNET Group stock price target raised to $25.13 from $24.23 at Jefferies
VNET
12.94%

Investing.com - Jefferies raised its price target on VNET Group Inc (NASDAQ:VNET) to $25.13 from $24.23 while maintaining a Buy rating on the stock. The new target represents a significant premium to the current price of $7.34, though InvestingPro data indicates the stock is trading above its Fair Value.

The research firm continues to view VNET as a "Top Pick" despite noting some near-term pressure for the company.

VNET reported second-quarter 2025 revenue and EBITDA growth of 22% and 28% respectively, which exceeded Jefferies estimates by approximately 14% and consensus expectations by about 7%.

The company’s performance marked an acceleration from the first quarter’s growth rates of 18% for revenue and 26% for EBITDA, with the outperformance driven by 112% growth in wholesale revenue due to a 102% increase in wholesale capacity utilized (511MW).

While VNET did not secure any major wholesale contracts in the second quarter, Jefferies expects larger contract wins in the second half of 2025, noting that the company has maintained both its current build plan and its fiscal year 2025 financial guidance.

In other recent news, VNet Group Inc. reported its second-quarter earnings for 2025, revealing a mixed financial performance. The company experienced a significant shortfall in its earnings per share (EPS), which came in at -$0.06, falling short of the anticipated $0.11. This represented a negative surprise of 154.55%. However, VNet Group surpassed revenue expectations, achieving $2.43 billion compared to the forecasted $2.3 billion, marking a 5.65% positive surprise. Despite the revenue beat, the disappointing EPS results were a focal point for investors. The financial results highlight the volatility in the company’s earnings performance. No recent analyst upgrades or downgrades have been reported for VNet Group. These developments provide a glimpse into the company’s current financial standing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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