RBC Upgrades GDS Holdings (GDS) to Outperform, Lifts PT to $48

GDS Holdings Ltd. (NASDAQ:GDS) is one of the best data center stocks to buy now. On August 11, RBC Capital’s Jonathan Atkin upgraded GDS Holdings to Outperform from Sector Perform and lifted his price target to $48 from $37.

Atkin’s positive view was in part driven by the stronger monetization and valuation multiples from the company’s recent asset-backed securities and commercial real estate trust deals. He also highlighted that a potential dual-primary listing in Hong Kong could act as a meaningful catalyst, improving liquidity in the shares and helping narrow the valuation gap.

RBC Upgrades GDS Holdings (GDS) to Outperform, Lifts PT to $48

A futuristic datacenter with servers and high-tech equipment, signifying the company’s cutting-edge digital technology.

With that upgrade, analyst sentiment is overwhelmingly positive as almost all the analysts now have a Buy or equivalent rating. Earlier in mid-July, a JP Morgan analyst also upgraded GDS Holdings Ltd. (NASDAQ:GDS) from Neutral to Overweight, with a higher price target of $46. He had cited the resumption of H20 chip exports to China as a reason because he believed it will support growth of the domestic data center business.

GDS Holdings Limited (NASDAQ:GDS) is a leading provider of high-performance, carrier- and cloud-neutral data center and IT infrastructure services across China and Southeast Asia. The company offers a broad range of solutions, including colocation, managed hosting, managed cloud services, and other value-added IT services.

While we acknowledge the potential of GDS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GDS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.