Movement Alert|GDS Holdings-SW Rises 3.52% at Open, Major Banks Maintain Buy Ratings Supporting Rebound After Sharp Selloff

Market Focus05-26

On May 26, GDS Holdings-SW rose 3.52% at open, trading at HK$34.66/share, with trading volume of HK$4.1453 million. The rebound comes after the stock plunged over 15% in recent sessions due to concerns over massive capital expenditure plans and Q1 profit quality disputes, triggering a technical bounce from oversold levels.

On the news front, Macquarie reiterated its Outperform rating on GDS Holdings, setting an H-share target price of HK$54.6, citing strong order backlogs that enhance revenue visibility for 2027 and beyond. Goldman Sachs also maintained its Buy rating with a 12-month H-share target price of HK$54, expecting the adjusted gross profit margin to remain at 10%–11% as new orders are delivered. The company had reported Q1 net income of RMB 26.52 billion, up 247.1% year-over-year, though the market had focused on the one-off nature of gains from the DayOne stake sale and concerns over the announced RMB 30–50 billion three-year capex plan pressuring future cash flows.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment