Chindata: Privatization Progress And Business Outlook In The Limelight (Rating Downgrade)

The Value Pendulum
Investing Group Leader

Summary

  • Bain Capital's privatization bid for CD might be unsuccessful, as a closing condition wasn't met.
  • But the latest disclosures from Chindata's peers provide favorable read-throughs for the company's future financial performance.
  • I downgrade Chindata's rating to a Hold, which I deem to be fair considering both the progress of CD's privatization deal and its peers' recent developments.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »
Data Center Technology Background

imaginima

Elevator Pitch

I have a Hold rating for Chindata Group Holdings Limited (CD) stock.

My decision is to lower my rating for CD from a Buy earlier to a Hold now. There is a risk that Bain Capital's bid to privatize

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This article was written by

The Value Pendulum
12.76K Followers

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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