GDS Holdings To Buy Data Centers In Beijing For About $570 Million

GDS Holdings Ltd. announced that it is acquiring major new data center in Beijing for an enterprise value of approximately RMB3.8 billion ($570 million). The company said, “it has extended Read More... The post GDS Holdings To Buy Data Centers In Beijing For About $570 Million appeared first on TipRanks Financial Blog.

GDS Holdings To Buy Data Centers In Beijing For About $570 Million

GDS Holdings Ltd. announced that it is acquiring major new data center in Beijing for an enterprise value of approximately RMB3.8 billion ($570 million). The company said, “it has extended a legally-binding offer to acquire 100% of the equity interests in target companies which own a major data center in the Shunyi district of Beijing (BJ14).”

GDS Holdings’ (GDS) CEO William Huang said “BJ14 is a rare opportunity in urban Beijing with large-scale and high-quality capacity and first-class customer profile. Shunyi District is a highly sought-after location by major internet companies and home to an increasing number of world-renowned hyperscalers. We will continue to pursue such acquisition opportunities with strategic value in a disciplined way, and further expand our market share.” (See GDS stock analysis on TipRanks)

On Aug. 25, Berenberg Bank analyst Nathan Crossett upgraded GDS Holdings to Buy from Hold and lifted the price target to $93 (17.5% upside potential) from $58, expecting more room for growth, as he believes that the Covid-19 pandemic has changed investors’ view on the various REIT (real estate investment trust) subsectors.

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 6 Buys, 1 Hold, and 1 Sell. Despite this year's 53.5% share rally, the average price target of $94.70 implies upside potential of another 19.6% to current levels.

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