Investing.com -- RBC Capital Markets lowered its rating on GDS Holdings (NASDAQ:GDS) to Sector Perform from Outperform given a strong year-to-date rally in the stock, with a view that the shares are now fully valued.
The brokerage raised its price target on GDS to $37, reflecting a "slightly less conservative EBITDA/MW assumption" and strong operational prospects.
RBC noted that GDS shares have outperformed its coverage universe this year. In China, domestic hyperscalers have increased capacity demand for both existing growth needs and AI-related initiatives over the past month.
Internationally, the firm updated its valuation assumptions, raising expected EBITDA/MW for DayOne's committed capacity to $1.5 million from $1.0 million.
Despite the improved outlook, RBC maintained its financial estimates based on GDS’ third-quarter 2024 structure, which consolidates DayOne. It also incorporated GDS’ 35% equity ownership in DayOne following its Series B funding round in the fourth quarter of 2024.
“We are lowering our rating on GDS to Sector Perform following an impressive run-up in the shares YTD and in particular over the past two weeks,” analyst at RBC Capital Markets said.
Related Articles
RBC cuts GDS rating after stock’s strong rally
Precigen shares surge on FDA priority review for PRGN-2012
Citadel eyes market maker role in crypto exchanges
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。