GDS (NASDAQ:GDS) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded GDS (NASDAQ:GDS) from a “sell” to a “hold” on Saturday, while other firms have moved bullishly too — Zacks to “strong‑buy” and Morgan Stanley maintaining an “overweight” rating with a $64 price target.
• Analysts’ consensus is a Buy with an average price target of $49.90, versus the stock trading around $42.41 and a 52‑week range of $22.53–$48.61.
• GDS reported (-$0.35) EPS on $417.6M revenue last quarter, has a market cap of $8.24B and a PE of ~81.6, and several hedge funds (notably Sachem Head and CPP) have recently increased stakes, leaving institutional ownership at about 33.7%.

GDS (NASDAQ:GDS - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a report issued on Saturday.

Several other research firms have also recently issued reports on GDS. Weiss Ratings upgraded GDS from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, April 21st. Zacks Research upgraded GDS from a "hold" rating to a "strong-buy" rating in a report on Monday, March 23rd. Morgan Stanley reiterated an "overweight" rating and issued a $64.00 price target on shares of GDS in a report on Tuesday, March 17th. Finally, Raymond James Financial reiterated a "strong-buy" rating on shares of GDS in a report on Tuesday, January 13th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, GDS has an average rating of "Buy" and a consensus price target of $49.90.

GDS Price Performance

Shares of GDS stock opened at $42.41 on Friday. The stock's fifty day moving average is $42.21 and its 200-day moving average is $39.16. The company has a debt-to-equity ratio of 1.60, a quick ratio of 2.51 and a current ratio of 2.60. The stock has a market capitalization of $8.24 billion, a PE ratio of 81.56 and a beta of 0.46. GDS has a 52 week low of $22.53 and a 52 week high of $48.61.

GDS (NASDAQ:GDS - Get Free Report) last posted its quarterly earnings results on Saturday, February 14th. The company reported ($0.35) earnings per share (EPS) for the quarter. The firm had revenue of $417.60 million during the quarter. GDS had a net margin of 8.12% and a return on equity of 8.72%. Equities research analysts expect that GDS will post 1.16 EPS for the current fiscal year.

Hedge Funds Weigh In On GDS

Several hedge funds have recently added to or reduced their stakes in the stock. Sachem Head Capital Management LP lifted its stake in GDS by 45.0% in the fourth quarter. Sachem Head Capital Management LP now owns 9,300,000 shares of the company's stock valued at $324,570,000 after buying an additional 2,885,000 shares during the period. Canada Pension Plan Investment Board lifted its stake in GDS by 77.7% in the second quarter. Canada Pension Plan Investment Board now owns 7,004,083 shares of the company's stock valued at $214,115,000 after buying an additional 3,062,658 shares during the period. Bamco Inc. NY lifted its stake in GDS by 35.0% in the third quarter. Bamco Inc. NY now owns 4,258,664 shares of the company's stock valued at $164,810,000 after buying an additional 1,104,756 shares during the period. Triata Capital Ltd lifted its stake in GDS by 23.5% in the fourth quarter. Triata Capital Ltd now owns 2,974,298 shares of the company's stock valued at $103,803,000 after buying an additional 566,345 shares during the period. Finally, Carrhae Capital LLP lifted its stake in GDS by 31.5% in the fourth quarter. Carrhae Capital LLP now owns 2,167,199 shares of the company's stock valued at $75,635,000 after buying an additional 518,921 shares during the period. Institutional investors and hedge funds own 33.71% of the company's stock.

GDS Company Profile

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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