VNET Group Inc (VNET) PT Raised to $16.30 at BofA Securities

BofA Securities analyst Daley Li raised the price target on VNET Group Inc (NASDAQ: VNET) to $16.30 (from $16.10) while maintaining a Buy rating.

The analyst comments "VNET reported its 1Q26 results on 26 May (HKT). In 1Q26, revenue grew 20% YoY to Rmb2.69bn (1% above consensus / in line with BofAe, see our preview report), and adj. EBITDA increased 31% YoY to Rmb892mn (1% / 5% above consensus / BofAe). VNET maintains its target to deliver 450-500MW of wholesale capacity in FY26E. We believe the huge hyperscale orders of 517MW YTD (with 510MW in 2Q26) could enhance market confidence on VNET’s growth visibility. We maintain our FY26-28E revenue/adj. EBITDA forecasts largely unchanged. Rolling over valuation (to 2H26-1H27E from 2Q26-1Q27E), we raise our PO to US$16.3 (from US$16.1) based on 13x 12-month forward est. EV/EBITDA (vs. prior 14x due to recent sector de-rating). Reiterate our Buy rating on VNET given 1) rapid wholesale business expansion driven by solid AI demand, and 2) potential synergy with CATL on AIDC in area of power storage & green energy."

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