GDS Holdings Ltd (GDS) saw its stock soar 8.81% in Monday's intraday trading, following an upgrade and raised price target from investment bank TD Cowen.
The surge came after TD Cowen raised its price target on GDS to $39 from $27, while maintaining a Buy rating on the China-based data center operator. The investment bank cited several positive factors:
- Detailed valuation analysis showed upside after GDS's strong Q3 results
- Expectations that GDS's Q4 results and 2025 guidance could beat analysts' estimates
- Record 25,600 sq meters of data center space installed for Tier 1 companies in Q3, driven by AI demand
- Confidence in GDS meeting its 2024 target of 60,000 sq meters of net installations, with 431 MW of total bookings
The analyst upgrade and bullish outlook highlight GDS's growth prospects in China's booming AI and data center market, fueling investor confidence in the stock's trajectory.