[ET Net News Agency, 24 February 2021] Daiwa Research maintained its target price for
GDS Holdings (09698) unchanged at HK$116 but downgraded its rating to "outperform" from
"buy".
The research house said GDS' share price has rallied 15% year-to-date and the valuation
for the stock has improved to 34-35x EV/EBITDA to Daiwa's 2021 EBITDA. Daiwa noted that
the market has greater expectations about GDS' capacity ramp-up in 2021 and more
acquisitions.
The research house remains bullish on GDS as more acquisitions towards 2H. However, it
also noted the near-term risk-reward profile has become less attractive at the current
valuation. (KL)