GDS Stock Drops 21.5% Following Disappointing Q4 Results

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Apr 08, 2025
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  • GDS Holdings shares experience significant declines following quarterly earnings report.
  • Analyst price targets suggest substantial upside potential despite recent setbacks.
  • GuruFocus estimates indicate slight undervaluation based on GF Value.

GDS Holdings (GDS, Financial) witnessed a dramatic 21.5% decline in its stock price this week, triggered by the company's fourth-quarter earnings announcement. Although the company posted earnings of $3.08 per share, this performance was largely driven by one-time events. On the downside, GDS reported a loss from ongoing operations amounting to $23.8 million. Revenue saw a 9.1% increase compared to the previous year, but conservative sales growth forecasts for 2023 have tempered investor enthusiasm.

Wall Street Analysts Forecast

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According to projections from 15 analysts, the average one-year price target for GDS Holdings Ltd (GDS, Financial) stands at $45.68, with the highest projection reaching $62.65 and the lowest at $36.79. This average target suggests a potential upside of 158.37% from the current trading price of $17.68. For a more comprehensive analysis, visit the GDS Holdings Ltd (GDS) Forecast page.

The consensus recommendation from 16 brokerage firms currently rates GDS Holdings Ltd (GDS, Financial) at 1.8, indicating an "Outperform" status. The rating system ranges from 1, which denotes a Strong Buy, to 5, indicating a Sell.

GuruFocus has estimated the GF Value for GDS Holdings Ltd (GDS, Financial) to be $18.62 in one year, pointing to an upside potential of 5.32% from the current price of $17.68. The GF Value represents GuruFocus' appraisal of the stock's fair trading value, computed using the historical multiples the stock has traded at, along with past business growth and future business performance projections. For more detailed insights, visit the GDS Holdings Ltd (GDS) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.