GDS Holdings Surpasses Analyst Target: Time for Investor Reevaluation?
Recently, shares of GDS Holdings Ltd (Symbol: GDS) have risen above the average analyst 12-month target price of $38.52, now trading at $39.05 per share. When a stock hits an established target price, analysts typically respond in one of two ways: they may downgrade based on valuation, or they might adjust their target upward. Analyst responses often hinge on the company’s fundamental business developments driving the stock’s rise. If the company’s outlook improves, a higher target may be warranted.
Analyst Targets Show Mixed Signals for GDS Holdings
In the Zacks coverage universe, 12 analysts contribute to the average target for GDS Holdings. However, it’s important to note that this average is just a mathematical calculation. Some analysts have set lower targets, with one predicting a price as low as $7.50. In contrast, there’s an analyst who anticipates a target as high as $63.00. The standard deviation among these targets is $15.054, underscoring the differing expectations in the market.
The reason for considering the average target price for GDS is to leverage collective insights—a reflection of diverse analyst opinions instead of relying on just one expert’s view. As GDS surpasses the average target price of $38.52 per share, investors are now prompted to reassess: Is $38.52 merely a milestone on the path to higher valuations, or has the stock become overvalued, suggesting it’s time to take profits?
| Recent GDS Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 9 | 9 | 8 | 8 |
| Buy ratings: | 1 | 2 | 2 | 2 |
| Hold ratings: | 3 | 1 | 1 | 1 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.54 | 1.33 | 1.36 | 1.36 |
The average rating displayed in the last row above is based on a 1 to 5 scale, where 1 signifies a Strong Buy and 5 signifies a Strong Sell. Data utilized in this article is provided by Zacks Investment Research via Quandl.com. For the latest Zacks research on GDS, access the report here—FREE.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
