Citigroup: Lowers Tencent Holdings Limited target price to HKD 670, maintains "Buy" rating
Citi released a research report stating that Tencent Holdings will announce its first-quarter results on May 14. The bank expects the performance may meet or slightly exceed market expectations. Entering the second quarter, Tencent plans to launch or is planning to launch at least eight new games (compared to only two in the first quarter), which is believed to help mitigate the high base effect from last year's Dungeon & Fighter mobile game and benefit overall revenue growth. Although the macro environment and advertising budget sentiment may be affected by tariffs, the seasonal 6.18 promotional period, improvements in AI advertising targeting, and the adoption of WeChat search can support continued double-digit year-on-year growth in advertising revenue. The target price has been lowered from HKD 681 to HKD 670. The "Buy" rating and preferred stock status are maintained
According to Zhitong Finance APP, Citigroup released a research report stating that Tencent Holdings Limited (00700) will announce its first-quarter results on May 14. The bank expects the performance may meet or slightly exceed market expectations. Entering the second quarter, Tencent plans to launch or is set to launch at least eight new games (compared to only two in the first quarter), which is believed to help mitigate the high base effect from last year's Dungeon & Fighter mobile game and benefit overall revenue growth. Although the macro environment and advertising budget sentiment may be affected by tariffs, the seasonal 6.18 promotion, improvements in AI advertising targeting, and the adoption of WeChat search can support a continued double-digit year-on-year growth in advertising revenue. The target price has been lowered from HKD 681 to HKD 670. The "Buy" rating and preferred stock status are maintained
