GDS (NASDAQ:GDS) Price Target Cut to $36.00 by Analysts at TD Cowen

Key Points

• TD Cowen trimmed its price target on GDS from $37 to $36 while keeping a Buy rating, implying modest upside from the current share price.
• GDS shares fell to $34.16 on the day, and the stock’s current consensus view remains Moderate Buy with an average analyst price target of $49.76.
• Recent operating results were mixed: the company beat first-quarter EPS estimates and posted 23.6% revenue growth, but investors are still watching how quickly strong data center demand translates into sustained earnings.

GDS (NASDAQ:GDS - Get Free Report) had its price objective decreased by equities researchers at TD Cowen from $37.00 to $36.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has a "buy" rating on the stock. TD Cowen's price objective would indicate a potential upside of 5.38% from the company's current price.

A number of other brokerages have also recently weighed in on GDS. Weiss Ratings raised GDS from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday. Zacks Research downgraded shares of GDS from a "strong-buy" rating to a "hold" rating in a research report on Monday. Wall Street Zen upgraded shares of GDS from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Finally, Morgan Stanley restated an "overweight" rating and issued a $64.00 price target on shares of GDS in a research report on Tuesday, March 17th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, GDS currently has a consensus rating of "Moderate Buy" and an average price target of $49.76.

GDS Price Performance

GDS stock traded down $2.50 on Thursday, hitting $34.16. 1,157,662 shares of the company's stock traded hands, compared to its average volume of 2,107,373. GDS has a 1-year low of $22.53 and a 1-year high of $48.61. The stock has a fifty day moving average of $42.60 and a 200-day moving average of $39.95. The stock has a market cap of $6.64 billion, a price-to-earnings ratio of 65.70 and a beta of 0.46. The company has a current ratio of 2.60, a quick ratio of 2.60 and a debt-to-equity ratio of 1.60.

GDS (NASDAQ:GDS - Get Free Report) last released its quarterly earnings data on Saturday, February 14th. The company reported ($0.35) earnings per share for the quarter. The company had revenue of $417.60 million for the quarter. GDS had a return on equity of 8.79% and a net margin of 8.12%. On average, analysts forecast that GDS will post 1.16 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada lifted its position in GDS by 30.7% in the 1st quarter. Royal Bank of Canada now owns 379,289 shares of the company's stock worth $9,608,000 after buying an additional 89,059 shares in the last quarter. Advisors Asset Management Inc. purchased a new stake in shares of GDS during the first quarter worth $25,000. NewEdge Advisors LLC acquired a new stake in GDS during the first quarter valued at $25,000. Northwestern Mutual Wealth Management Co. boosted its position in GDS by 113.0% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,836 shares of the company's stock valued at $56,000 after purchasing an additional 974 shares during the last quarter. Finally, EverSource Wealth Advisors LLC grew its stake in GDS by 41.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,806 shares of the company's stock valued at $55,000 after purchasing an additional 531 shares in the last quarter. 33.71% of the stock is owned by hedge funds and other institutional investors.

GDS News Summary

Here are the key news stories impacting GDS this week:

• Positive Sentiment: GDS beat first-quarter earnings expectations, reporting EPS of $1.53 versus estimates of $1.06, and management highlighted record data center bookings and strong AI-related demand. GDS Holdings Limited Reports First Quarter 2026 Results
• Positive Sentiment: First-quarter net revenue rose 23.6% year over year to RMB3.37 billion, underscoring continued expansion in the company’s core data center business. GDS Holdings Limited Reports First Quarter 2026 Results
• Neutral Sentiment: Analysts noted that EBITDA was roughly in line with expectations, but revenue came in slightly below some estimates and investors are watching how quickly new orders convert into earnings. GDS-SW Tumbles 13%+; G Sachs: 1Q Revenue Slightly Misses, EBITDA In Line; Daiwa: Strong Orders but Earnings to Take Time
• Negative Sentiment: GDS shares were pressured after guidance failed to fully excite investors, with commentary suggesting earnings strength was boosted by one-time DayOne gains rather than purely recurring data center operations. GDS Holdings Ltd (GDS) Q1 2026 Earnings Call Highlights
• Negative Sentiment: The company also announced the resignation of its independent director and audit committee chair, which raised some governance concerns for investors. GDS Announces Resignation and Appointment of Independent Director and Audit Committee Chair

About GDS

GDS Holdings Limited, founded in 2001 and headquartered in Shanghai, is a leading network-neutral data center services provider in China. The company operates a portfolio of state-of-the-art data center facilities designed to support the mission-critical IT infrastructure of cloud service providers, internet enterprises, financial institutions, and government entities. GDS was among the first Chinese providers to offer high-density colocation solutions, catering to customers with demanding computing and storage requirements.

GDS specializes in delivering scalable colocation, cross-connect, and interconnection services within its facilities, enabling clients to establish high-speed, low-latency connections to major cloud platforms and internet exchange points.

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