[ET Net News Agency, 21 May 2021] Daiwa Research cut its target price for GDS Holdings
(09698) to HK$87 from HK$97 and reaffirmed its "outperform" rating.
GDS released its 1Q results on 20 May. The research house sees the enlarged pipeline
over 2021-22 further enhancing its long-term revenue visibility. Despite investors'
concern over the near-term price pressure, Daiwa believes GDS has a stronger-than-peer
capability to avoid a large-scale price cut in renewal contracts.
Daiwa also sees any unexpected M&A deals to serve as catalysts to drive its share price,
and suggested that investors accumulate the stock after a 20% correction since early
March. (KL)