VNET Group Inc (VNET) PT Raised to $3.30 at BofA Securities

BofA Securities analyst Daley Li raised the price target on VNET Group Inc (NASDAQ: VNET) to $3.30 (from $2.80) while maintaining a Buy rating.

The analyst comments "VNET reported 2Q24 results on 28 August (HKT), and we attended the post-results earning call. Top-line grew 9% YoY to Rmb1.99bn (3% above consensus/BofAe), and adj EBITDA increased 7% YoY to Rmb574mn (5%/1% above consensus/BofAe) in 2Q24. Key takeaways from the call are as follows:1) wholesale IDC demand, especially from AI, is strong; 2) management raised FY24E capex guidance to Rmb5-5.5bn (from Rmb3.7- 4.2bn), given strong new order wins and more projects under construction; 3) VNET will deliver 100-140MW wholesale capacity in 2H24E and 110-150MW in 1H25E. In view of strong wholesale capacity ramp-up, we raise our FY24-26E Adj. EBITDA estimates by 2- 5%. Rolling over valuation, we adjust our PO to US$3.3 (from US$2.8), based on 9x 12- month forward EV/EBITDA (unchanged). We reiterate our Buy rating on VNET given improving downstream demand and order visibility, especially from AI."

You May Also Be Interested In