Substantial increases in the price target by an analyst resulted in substantial profits for. GDS Holdings ‘ ( GDS -5.69% ) On Monday, a Chinese data center company’s American depositary shares (ADS) listed on the U.S. stock market saw a significant increase of exactly 10%. This gain was almost 10 times higher than the previous day’s. S&P 500 The index ended the day with a gain of almost 1%.
A massive lift
Before the market opened that day, Jefferies Forecaster Edison Lee made a significant adjustment to his valuation of GDS, while still suggesting a buy rating for the specific stock. tech stock He significantly increased his price estimate to $25.05 per ADS, up from the previous $16.69.
The reason for Lee’s price target change was not immediately clear.
Surprisingly, the decision was made shortly before the company’s upcoming earnings announcement, which is less than 48 hours away. The Jefferies analyst and other experts tracking the company’s stock predict a larger net loss for the second quarter, estimating it to be $0.26 per share compared to $0.17 in the same period last year. However, they are optimistic that the specialized technology company will increase its revenue by 15% annually, reaching almost $390 million.
Upcoming quarterly financial results are set to be released.
GDS is set to announce its results and conduct a conference call to review them prior to the U.S. market opening on Wednesday. Shareholders are not anticipating a recurrence of the disappointing first-quarter results, as the company did not meet the net loss estimates predicted by analysts. Nonetheless, it did achieve the anticipated revenue for the quarter.
