Goldman Sachs has released a new research report expressing optimism about the growth potential and investment value of 21Vianet (VNET, Financial). The firm has raised its price target for the stock by 142% to $12.1 per share, reaffirming its "buy" rating.
Recently, several leading tech companies have launched new AI models, accelerating the demand for AI inference. Goldman Sachs believes that AI is still in its early stages, and the introduction of these new models is driving growth in AI inference demand. As the costs of AI training and inference decrease, the development of AI computing infrastructure is shifting from a "high-cost constraint" to "sustainable growth," presenting long-term opportunities for the data center industry and increasing the demand for high-performance data centers.
Amid the rapidly growing demand for AI-driven data centers, Goldman Sachs notes that 21Vianet has successfully captured a significant share of the Chinese AI market with its newly built data center campuses. The company has achieved lower power costs by integrating green electricity and has gained high customer trust through its excellent delivery capabilities. Goldman Sachs expects 21Vianet's EBITDA to grow by 12%, 17%, and 22% year-over-year from 2024 to 2026, which will drive the company's equity value.
Goldman Sachs has also raised 21Vianet's EV/EBITDA multiple to 10x for the next 12 months, driven by optimistic market sentiment in the AI sector and the company's continued growth in data center revenue and EBITDA. The firm notes that the sustainable growth model of the AI industry is increasing the capital needs of the data center sector, potentially accelerating REITs and debt financing activities to support capacity expansion and enhance shareholder value.
