BofA Securities Reiterates Buy Rating on VNET Group Inc (VNET)

BofA Securities analyst Daley Li reiterated a Buy rating and $2.80 price target on VNET Group Inc (NASDAQ: VNET).

The analyst comments "We hosted investor meetings with VNET mgmt. in HK on 13 Jun (Thur). Mgmt. saw improving downstream demand and high order visibility, boosted by (1) recovering capex from leading internet companies, (2) strong demand from short-video customers, and (3) rising IDC demand from AI and LLM development. Overall, move-in pace is fast for wholesale data centers, normally reaching 90%+ utilization rate within half a year. We think the lower financing costs (3-4%) post the investment from SDHS should enhance its competitive strength. We maintain Buy rating for VNET given (1) improving downstream demand and order visibility, and (2) potential synergies with its shareholder (i.e., SDHG) to boost wholesale and AI-related business."

For an analyst ratings summary and ratings history on VNET Group Inc click here. For more ratings news on VNET Group Inc click here.

Shares of VNET Group Inc closed at $2.37 yesterday.

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