GDS Holdings Ltd (GDS) shares surged 9.57% in pre-market trading on Monday, following an analyst initiation with an Outperform rating.
JMP Securities initiated coverage on GDS with an Outperform rating and a $35 price target, noting that the company is well-positioned to benefit from the ongoing data center buildout cycle in China. The firm believes that GDS, as a leading developer and operator of high-performance data centers in the country, is poised to capitalize on the increasing demand for data center services driven by rapid growth in cloud adoption, digital transformation, and data localization requirements.
With the positive analyst outlook and the favorable industry tailwinds, investors are bullish on GDS Holdings' prospects, driving the significant pre-market rally in the stock.
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