Shares of China-based data center operator GDS Holdings Ltd (GDS) soared nearly 6% on Tuesday's intraday trading session, coming off an 8.81% surge from the previous trading day.
The stock's surge was driven by an upgrade and raised price target from investment bank TD Cowen. Citing GDS's strong Q3 results and expectations of a Q4 beat, TD Cowen raised its price target on GDS to $39 from $27, maintaining a Buy rating.
The bullish outlook highlights GDS's growth potential in China's booming AI and data center market. TD Cowen noted GDS's record 25,600 square meters of data center space installed for Tier 1 companies in Q3, fueled by robust AI demand. The investment bank expressed confidence in GDS meeting its 2024 target of 60,000 square meters of net installations with 431 MW of total bookings.
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