Major Bank Ratings | Morgan Stanley: Raises Target Prices for GDS Holdings and 21Vianet, Rating "Overweight"

Glonghui January 22｜Morgan Stanley released a report stating that the scale of demand, resource availability, and policies are jointly driving hyperscale operators to shift future AI data center deployments to remote regions. The firm believes that in the AI era, the supply and demand dynamics of data centers in remote regions will be healthier and have stable return prospects, and leading data center operators with strong resource pipelines will benefit. Morgan Stanley is optimistic about GDS Holdings, giving it an "Overweight" rating and listing it as a top pick, raising the target price from $54 to $64, due to its strategic transformation in the Chinese market and rapid progress in building resources in remote regions. Meanwhile, the firm is also optimistic about 21Vianet, raising its rating to "Overweight" and adjusting the target price from $14 to $16 due to its first-mover advantage. The firm maintains an "Equal-weight" rating for Aofei Data, and retains a "Underweight" rating for both Sinnet and Baosight Software, as their lack of effective layout in the right remote hubs will put them at risk of losing market share in the medium to long term.