Goldman Sachs Group, Inc. has raised the target price for VNET Group, Inc. Sponsored ADR (VNET.US) to 12.1 US dollars and reiterated a "buy" rating.

Following Morgan Stanley, Goldman Sachs Group, Inc. has also released its latest research report, highlighting the growth potential and value of VNET Group, Inc. Sponsored ADR (VNET.US). According to the latest research report, Goldman Sachs Group, Inc. has raised the target price of VNET Group, Inc. Sponsored ADR by 142% to $12.1 per share, and reiterated a "buy" rating. Recently, leading technology companies such as DeepSeek, ByteDance's Doubao 1.5 Pro, and Moonshot's Kimi k1.5 have launched new-generation large-scale models. Goldman Sachs Group, Inc. believes that AI is still in the early stages of development, and the introduction of these new models has accelerated the growth of AI inference demand. More importantly, as AI training and inference costs decline, the development of AI computing infrastructure is transitioning from "high-cost constraint" to "sustainable growth", bringing longer-term development opportunities to the data center industry and further increasing demand for high-performance data centers. Against the backdrop of rapidly growing demand for AI-driven data centers, Goldman Sachs Group, Inc. points out that VNET Group, Inc. Sponsored ADR has successfully captured a significant share of the Chinese AI market with its newly built base-type data center parks. By accessing green power, the company has achieved lower power costs and won high customer trust with its excellent delivery capabilities. Goldman Sachs Group, Inc. expects that VNET Group, Inc. Sponsored ADR will achieve year-on-year EBITDA growth of 12%, 17%, and 22% respectively from 2024 to 2026, which will strongly drive the continuous growth of the company's equity value. At the same time, Goldman Sachs Group, Inc. has raised the EV/EBITDA multiple of VNET Group, Inc. Sponsored ADR for the next 12 months to 10x. This adjustment is mainly driven by the increasingly optimistic sentiment in the AI field, the continued growth of the company's base-type data center revenue and EBITDA compared to the global industry average, indicating significant upside potential in the company's valuation. In addition, Goldman Sachs Group, Inc. analysis suggests that the sustainable growth model of the AI industry is leading to a continuous increase in capital requirements for the data center industry, with future REITs and debt financing activities potentially accelerating to support capital recycling and deleveraging, further driving capacity expansion and enhancing shareholder value.