Analysts at Berenberg Bank provided their views on GDS Holdings Limited (NASDAQ:GDS) following the company’s recently reported Q4 results. The analysts lowered their price target on the company’s shares to $72 from $83 on a more conservative demand outlook.

Q4 AFFO per share came in at $0.23, lower than the analysts’ estimate of $0.36, and core NOI was 4.3% below Berenberg’s forecast, driven by a higher cost of sale. Revenue was $343.2 million, compared to the consensus estimate of $338.69 million.

While demand remains generally solid, management noted that organic bookings will be down year-over-year. The demand profile is also changing from a large cloud to more enterprise. In regard to pricing, the commentary was less than favorable, with management expecting a mid-single-digit decline that could persist into 2023. Even with near-term headwinds, the analysts mentioned that they are still bullish long term.