UBS Group AG, Nomura, and Jefferies Financial Group Inc. unanimously give VNET Group, Inc. Sponsored ADR (VNET.US) a buy rating, with a highest target price of $25.

Multiple institutions are bullish on VNET Group, Inc. Sponsored ADR (VNET.US), believing that the company's valuation is underestimated, and have significantly raised the company's target price. UBS Group AG previously listed the company as their top choice for Chinese data center enterprises and has increased the company's target price to $25, corresponding to 18x EV/EBITDA in 2026; Nomura Securities has given the company a buy rating and raised the target price to $20.1, corresponding to 17.6x EV/EBITDA in 2026; Jefferies Financial Group Inc. raised the target price to $20.6, corresponding to 19x EV/EBITDA in 2025, and continues to list VNET Group, Inc. Sponsored ADR as one of the preferred stocks in the Chinese AI supply chain. UBS Group AG stated that VNET Group, Inc. Sponsored ADR has one of the largest IDC parks in Ulanqab, with abundant resources to meet the strong demand for AI training and inference from large-scale enterprises, with high certainty of order conversion to EBITDA. Additionally, the company operates high-quality retail assets in Beijing and has expanded its wholesale resources in Hebei, further consolidating its competitive advantage in the AI cloud services and non-large-scale customer market. With the gradual release of existing large-scale orders, the company is expected to grow adjusted EBITDA by 18%/26% in 2025/2026. Nomura pointed out that major domestic cloud providers are increasing their investments in AI infrastructure, driving the recovery of IDC demand. With its premium customer resources and proactive capacity expansion, VNET Group, Inc. Sponsored ADR is expected to benefit fully from the demand for AI training and inference. The firm predicts that VNET Group, Inc. Sponsored ADR's total revenue in Q4 2024 will grow by 9.5% to RMB 2.08 billion, with adjusted EBITDA increasing by 33.1% to RMB 586 million year-on-year. Looking ahead to 2025-2026, as AI training demand accelerates, the firm forecasts that the company's adjusted EBITDA will grow by 16%/20% in 2025/2026. Jefferies Financial Group Inc. stated that China is entering an upward cycle of artificial intelligence capital expenditure, with signs of recovery in capital expenditure by Chinese internet companies. Despite facing chip restrictions, DeepSeek's more efficient training and inference capabilities will drive server capital expenditure to exceed RMB 700 billion in 2025/2026, thereby fueling strong growth in IDC demand. Jefferies Financial Group Inc. predicts that wholesale demand will reach nearly 2.5GW in 2025/2026. The firm believes that VNET Group, Inc. Sponsored ADR, focusing on the Chinese market and closely collaborating with major domestic internet data center users, will fully benefit from the rising cycle of AI capital expenditure in China. With strategic shareholder SDHG supporting its renewable energy supply, enabling it to win large wholesale orders and secure bank financing at low costs, the institution predicts that VNET Group, Inc. Sponsored ADR's EBITDA will grow at a compound annual growth rate of 26% over the next three years, exceeding the previous forecast of 20%. They also believe that, with multiple drivers such as industry upswings, potential new contracts, and optimistic market sentiment, VNET Group, Inc. Sponsored ADR is likely to achieve higher valuations.