Jefferies Maintains "Buy" Rating on VNET Group, Inc. (NASDAQ:VNET)

Core Viewpoint - Jefferies maintains a "Buy" rating for VNET Group, raising the price target to $23.55, indicating confidence in the company's growth prospects [1][6]. Financial Performance - VNET Group reported break-even earnings per share for Q4 2025, missing the Zacks Consensus Estimate by $0.04, but achieved revenue of $383.9 million, surpassing estimates [2][6]. - The company has consistently failed to exceed consensus EPS estimates over the past four quarters, yet has exceeded revenue estimates in three of the last four quarters, showing strong revenue growth from $307.75 million a year ago [3]. Business Operations - VNET's strong performance is driven by its wholesale IDC business, supported by robust customer demand and efficient capacity scaling [4]. - In Q4 2025, VNET secured 135 megawatts of new wholesale orders and delivered a record 404 megawatts in 2025, surpassing its guidance on revenues and adjusted EBITDA [4][6]. Stock Performance - VNET's stock is currently priced at approximately $9.49, experiencing a decline of about 9.71% on the trading day, with a market capitalization of approximately $2.55 billion [5]. - Over the past year, the stock has fluctuated between a high of $14.48 and a low of $4.65 [5].