VNET Group Inc (VNET) PT Lowered to $16.10 at BofA Securities following Q4 results

BofA Securities analyst Daley Li lowered the price target on VNET Group Inc (NASDAQ: VNET) to $16.10 (from $17.90) while maintaining a Buy rating.

The analyst commented, "VNET reported its 4Q25 results on 16 Mar (HKT). In 4Q25, revenue grew 20% YoY to Rmb2.69bn (3% above consensus / BofAe), and adj. EBITDA increased 12% YoY to Rmb805mn (3% / 4% above consensus / BofAe). FY25 capex was Rmb8.24bn, lower than its guidance of Rmb10-12bn thanks to cost optimization on 1) economies of scale, and 2) improved supply chain control. Mgmt. guides FY26 revenue / adjusted EBITDA of Rmb11.5-11.8bn / Rmb3.55-3.75bn, implying 16-19% / 19-26% YoY growth (midpoints in-line with consensus), mainly driven by strong wholesale IDC business. VNET targets to deliver 450-500MW wholesale IDC capacity in FY26 with capex of Rmb10-12bn, higher than FY25 delivery of 404MW, indicating promising new order trend on strong AI demand. We think overall results and guidance look solid, while there is limited color shared for recent new order trend. We keep our FY26-27E revenue and adj. EBITDA forecasts largely unchanged. Rolling over valuation, we adjust our PO to US$16.1 (from US$17.9) based on 14x 12-month forward EV/EBITDA (prior 15x) due to recent sector de-rating. We reiterate our Buy rating on VNET given strong growth in rapid wholesale business expansion driven by solid AI demand."

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