JMP Securities Raises GDS Holdings PT to $50 from $40, Maintains Outperform

JMP Securities Raises GDS Holdings PT to $50 from $40, Maintains Outperform

JMP Securities has recently raised its price target for GDS Holdings (GDS) to $50 from $40, while maintaining its "Outperform" rating for the stock. The move comes on the heels of the company's strong Q2 2025 earnings report, which saw revenue surge 4.1% year-over-year (YoY) to $404.9 million and earnings per share (EPS) of -$0.06, beating estimates by $0.04 [1].

The earnings surprise was driven by robust performance in data center operations, with total area committed and pre-committed increasing by 8.1% YoY to 663,959 square meters as of June 30, 2025. Area utilized also increased by 14.1% YoY to 479,186 square meters, while area in service rose by 6.5% YoY to 618,060 square meters. The utilization rate improved to 77.5% as of June 30, 2025, from 72.4% a year ago [1].

Despite adjustments for the C-REIT transaction, GDS Holdings reaffirmed its full-year revenue guidance for 2025, with total revenues expected to range from RMB11,290 million to RMB11,590 million. Adjusted EBITDA is projected to be between RMB5,190 million and RMB5,390 million for the year [1].

Wall Street analysts have an average target price of $45.98 for GDS Holdings, with projections ranging from $36.79 to $64.51. This indicates a potential upside of 45.54% from the current market price of $32.14. The consensus among 18 brokerage firms rates GDS with an "Outperform" status, but the estimated GF Value suggests a downside of 48.18% from the current market price [1].

GDS Holdings has consistently outperformed market expectations, with the company's shares adding about 33% since the beginning of the year, compared to the S&P 500's gain of 9%. The company's earnings surprise and strong revenue growth have been driven by its data center operations, which have seen significant expansion and utilization improvements [1].

Investors should keep an eye on the company's earnings call and future guidance to gauge the sustainability of its stock price movement. The company's earnings outlook and industry performance will also play a crucial role in determining its stock's performance in the coming quarters.

References:
[1] https://www.ainvest.com/news/gds-holdings-q2-revenue-surges-4-1-yoy-beats-eps-estimates-2508/
[2] https://www.ainvest.com/news/gds-holdings-announces-financial-reconciliation-h1-2025-2508-65/