Shares of GDS Holdings (GDS 0.20%) were rising today after the company's stock was upgraded by an analyst.
The tech stock was up by 15.3% as of 11:20 a.m. ET.
Morgan Stanley analyst Yang Liu upgraded GDS Holdings' stock from equal weight to overweight and put a $60 price target on it today. That price represents nearly 54% upside from GDS' closing price yesterday.
Investors typically like to see analysts upgrade a stock and raise their price targets, so it's no surprise that Liu's upgrade is helping to boost GDS' share price today.
Today's upgrade comes just one day after Truist analyst Greg Miller lowered GDS's price target from $115 to $85, but maintained a buy rating for the company's stock. The analyst lowered his price target after making adjustments to his discount cash-flow model.
Investors have been cooling to GDS Holdings' shares, despite today's significant gains. The tech stock is down nearly 60% over the past 12 months.
Technology stocks in general have fallen since the beginning of 2022, but GDS' share price slide over the past year comes from, at least in part, investors moving away from Chinese tech stocks in the wake of new anti-monopoly regulations in China and increased political tension with the U.S.
The company also missed analysts' consensus earnings estimate in the third quarter (reported on Nov. 16), which has put increased pressure on GDS' share price.
Investors should keep a close eye on the company's fourth-quarter and full-year 2021 results for more insight on how GDS Holdings is doing financially. The company is estimated to report those results sometime next month.