GDS Holdings ( GDS ) underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $40.17, a high estimate of $53.00, and a low estimate of $26.00. This upward trend is apparent, with the current average reflecting a 54.38% increase from the previous average price target of $26.02.

Analyzing Analyst Ratings: A Detailed Breakdown

The analysis of recent analyst actions sheds light on the perception of GDS Holdings ( GDS ) by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to GDS Holdings ( GDS ). This information provides a snapshot of how analysts perceive the current state of the company.

Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of GDS Holdings ( GDS ) compared to the broader market.

Price Targets: Analysts predict movements in price targets, offering estimates for GDS Holdings's ( GDS ) future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into GDS Holdings's ( GDS ) market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on GDS Holdings ( GDS ) analyst ratings.

Delving into GDS Holdings's ( GDS ) Background

GDS Holdings ( GDS ) started as an IT service provider in 2001 then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. It has aggressively raised capital over the past four years for expansion. Its data centers are located predominantly in and around the Tier 1 cities in China and it has also started an expanding into Southeast Asia. GDS listed on the Nasdaq in 2016 and completed a secondary listing in Hong Kong in 2020.

GDS Holdings's Economic Impact: An Analysis

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: GDS Holdings's ( GDS ) revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 17.73%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: GDS Holdings's ( GDS ) net margin excels beyond industry benchmarks, reaching -6.94%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of -1.11%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of -0.26%, the company showcases effective utilization of assets.

Debt Management: GDS Holdings's ( GDS ) debt-to-equity ratio stands notably higher than the industry average, reaching 2.73. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.