UPDATE: Raymond James Downgrades GDS Holdings (GDS) to Outperform

Raymond James analyst Frank Louthan downgraded GDS Holdings (NASDAQ: GDS) from Strong Buy to Outperform with a price target of $68.00.

The analyst comments "We are lowering our rating on shares of GDS to Outperform from Strong Buy due to concerns over a shift in U.S. public policy toward a potentially faster de-listing of the name. We believe this will result in greater volatility in the shares from non-fundamental news flow, and as such, it is difficult to maintain our stongest rating on shares of GDS in the current environment. For longer-term investors willing to overlook this next 12-18 months of noise, we believe the longterm fundamentals of the business are in great shape and are poised for a significant return to growth in 2023. We are very bullish on the company’s prospects in that regard, as the demand and the public policy decisions in China significantly favor well-capitalized large data center names like GDS, further enhancing its long term growth outlook."

For an analyst ratings summary and ratings history on GDS Holdings click here. For more ratings news on GDS Holdings click here.

Shares of GDS Holdings closed at $39.35 yesterday.

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