Vnet's stock surges 12.94% after price target increase following strong earnings.

Vnet (VNET) stock surged 12.94% after Jefferies analyst Edison Lee raised his price target to $25.13 from $24.23, maintaining a buy rating. The company reported a 22% increase in net revenue to 2.43 billion yuan ($339 million) and a 28% rise in non-GAAP EBITDA to 733 million yuan ($102 million). Despite concerns over debt levels, Vnet is poised to benefit from the growing demand for data center services.

Title: VNET Group Stock Price Target Raised by Jefferies; Q2 2025 Financial Results Show Strong Growth

VNET Group Inc. (NASDAQ: VNET) stock surged by 12.94% after Jefferies analyst Edison Lee raised his price target to $25.13 from $24.23, while maintaining a buy rating. The company reported a 22% increase in net revenue to 2.43 billion yuan ($339 million) and a 28% rise in non-GAAP EBITDA to 733 million yuan ($102 million) for the second quarter of 2025 [1]. Despite concerns over debt levels, VNET is poised to benefit from the growing demand for data center services.

Jefferies continues to view VNET as a "Top Pick" despite noting some near-term pressure for the company. The research firm highlighted the company’s strong performance, with revenue and EBITDA growth exceeding estimates by approximately 14% and 7% respectively [1]. The acceleration in growth was driven by a significant increase in wholesale revenue, which grew by 112% due to a 102% increase in wholesale capacity utilized (511MW) [2].

VNET Group’s wholesale IDC business continued to grow rapidly, with capacity in service increasing by 101MW quarter over quarter to 674MW, and utilized wholesale capacity growing by 74MW quarter over quarter to 511MW [2]. The company also secured a combined capacity of around 4MW in retail orders and won a 20MW wholesale order through its JV project in Hebei Province [2].

However, 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, representing a negative surprise of 154.55% [1]. Despite this, VNET Group surpassed revenue expectations, achieving $2.43 billion compared to the forecasted $2.3 billion, marking a 5.65% positive surprise [1].

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.

VNET Group’s strong financial performance and continued growth in the data center services sector have positioned the company favorably in the market. Despite the near-term challenges, the company’s long-term potential remains promising, supported by its effective strategic execution and robust fundamentals.

References

[1] https://www.investing.com/news/analyst-ratings/vnet-group-stock-price-target-raised-to-2513-from-2423-at-jefferies-93CH-4206062
[2] https://ir.vnet.com/news-releases/news-release-details/vnet-reports-unaudited-second-quarter-2025-financial-results