Citigroup: GDS Holdings Ltd. Sponsored ADR Class A (GDS.US) last year's performance and this year's guidance roughly meet expectations, rating as "buy."

Citigroup released a research report stating that GDS-SW (09698) had a 1.2% quarterly revenue growth in the fourth quarter of last year, an 8.6% year-on-year increase, reaching 2.92 billion yuan (same below), in line with expectations. The total revenue for the whole year last year reached 11.4 billion yuan, a year-on-year increase of 10.8%, which is in line with the midpoint of the guidance range. The target price for GDS Holdings Ltd. Sponsored ADR Class A (GDS.US) stock is $51.2, with a rating of "buy". For the outlook and guidance for 2026, the company expects total revenue for the year to be between 12.4 billion and 12.9 billion yuan, a year-on-year growth of 8.5% to 12.8%, with the market consensus expecting 12.7 billion yuan. Adjusted EBITDA is expected to be between 5.75 billion and 6 billion yuan, higher than the market consensus of 5.7 billion yuan. The capital expenditure target for 2026 is 9 billion yuan, reflecting strong demand.