GDS Hlds (GDS) Stock Forecast & Price Target

GDS Holdings has demonstrated a strong financial outlook, with an increase in the price target to $50.00, reflecting a compelling valuation of approximately 16.5 times estimated 2026 EBITDA. The successful launch of its C-REIT has been pivotal, resulting in a valuation of around 22.0 times 2026 EBITDA, surpassing prior expectations and indicating an upward trajectory compared to the current trading multiple of approximately 12.0 times EBITDA. Furthermore, projections suggest that international operations could exceed $1.0 billion in EBITDA by 2028, coupled with the anticipated C-REIT conversion yielding significant improvements in the valuation of its Chinese business.

GDS Holdings is facing a negative outlook primarily due to the ongoing weakness in the Chinese tech market, which is coupled with structural changes in the Chinese REIT market that undermine its sum-of-the-parts valuation. Additionally, the company encounters significant risks associated with its non-China operations, including execution challenges, pricing pressures, elevated customer churn, and heightened government regulatory risks in the tech sector. These factors collectively suggest that the company's current valuation, estimated at around 12.0x 2026 EBITDA, may not accurately reflect the underlying challenges impacting its future financial performance.