GDS (NASDAQ:GDS) Rating Increased to Buy at Zacks Investment Research

GDS (NASDAQ:GDS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday, Zacks.com reports. The brokerage presently has a $45.00 price target on the stock. Zacks Investment Research‘s target price points to a potential upside of 12.87% from the stock’s previous close.

According to Zacks, “GDS Holdings Limited provides information technology service. It offers integrated solutions, consulting, service and training including data center hosting, IT management and operation outsourcing, business continuity management, disaster recovery and cloud computing services. The company operates primarily in Shanghai, Beijing, Shenzhen, Guangzhou and Chengdu. GDS Holdings Limited is headquartered in Shanghai, the People’s Republic of China. “

A number of other research firms also recently issued reports on GDS. BidaskClub downgraded shares of GDS from a “buy” rating to a “hold” rating in a research report on Tuesday, October 1st. Guggenheim set a $57.00 target price on shares of GDS and gave the company a “buy” rating in a research report on Thursday, September 12th. Royal Bank of Canada upped their target price on shares of GDS to $58.00 and gave the company an “outperform” rating in a research report on Wednesday, August 14th. They noted that the move was a valuation call. ValuEngine downgraded shares of GDS from a “hold” rating to a “sell” rating in a research report on Saturday, October 5th. Finally, TheStreet upgraded shares of GDS from a “d+” rating to a “c-” rating in a research report on Friday, October 11th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and four have issued a buy rating to the company. The stock presently has a consensus rating of “Buy” and an average target price of $50.50.

Shares of NASDAQ GDS opened at $39.87 on Monday. The firm’s 50-day simple moving average is $41.48 and its 200 day simple moving average is $38.66. The company has a market cap of $4.84 billion, a price-to-earnings ratio of -78.18 and a beta of 3.02. The company has a quick ratio of 2.01, a current ratio of 2.01 and a debt-to-equity ratio of 1.56. GDS has a 12-month low of $20.84 and a 12-month high of $45.13.

GDS (NASDAQ:GDS) last released its earnings results on Tuesday, August 13th. The company reported ($0.11) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.03. GDS had a negative net margin of 13.61% and a negative return on equity of 6.70%. The company had revenue of $985.20 million for the quarter, compared to the consensus estimate of $968.38 million. During the same period in the prior year, the company posted ($0.82) EPS. The company’s revenue was up 54.5% compared to the same quarter last year. On average, equities analysts expect that GDS will post -0.39 earnings per share for the current year.

Several hedge funds have recently made changes to their positions in the company. Aviva PLC increased its stake in shares of GDS by 1.7% in the 2nd quarter. Aviva PLC now owns 18,200 shares of the company’s stock valued at $684,000 after acquiring an additional 300 shares during the last quarter. Comerica Bank increased its stake in shares of GDS by 6.6% in the 2nd quarter. Comerica Bank now owns 7,807 shares of the company’s stock valued at $304,000 after acquiring an additional 486 shares during the last quarter. Tower Research Capital LLC TRC increased its stake in shares of GDS by 93.5% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,440 shares of the company’s stock valued at $54,000 after acquiring an additional 696 shares during the last quarter. Envestnet Asset Management Inc. increased its stake in shares of GDS by 5.8% in the 3rd quarter. Envestnet Asset Management Inc. now owns 16,423 shares of the company’s stock valued at $658,000 after acquiring an additional 895 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its stake in shares of GDS by 2.6% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 51,914 shares of the company’s stock valued at $1,951,000 after acquiring an additional 1,320 shares during the last quarter. 69.44% of the stock is owned by institutional investors.

About GDS

GDS Holdings Limited, together with its subsidiaries, designs, builds, and operates data centers in the People's Republic of China. The company provides colocation, managed hosting, and managed cloud services, as well as consulting services. Its data centers service customers that primarily operate in the Internet and banking industries in Shanghai and Beijing municipalities; and Jiangsu, Guangdong, Sichuan, and Hebei Provinces.

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