Citi: Reiterates Tencent Holdings Limited "Highly Confident to Outperform the Market" Rating, Target Price HKD 645
Citi released a research report stating that it reaffirms its "highly confident outperform" rating on Tencent Holdings, predicting that the first quarter performance will be robust, with revenue expected to grow by 10% year-on-year to RMB 175.3 billion. Adjusted earnings before interest and taxes (EBIT) are expected to reach RMB 67.3 billion, a year-on-year increase of 15%, mainly benefiting from the growth of the gaming and advertising businesses, with gaming revenue expected to grow by 15.8% and online advertising revenue expected to grow by 17.4% year-on-year. Tencent strengthened its GPU procurement in the fourth quarter of last year, anticipating that its cloud computing business will grow or accelerate in the second half of this year. Citi believes that Tencent is more defensive amid tariff uncertainties, maintaining a target price of HKD 645, and predicting that the company's revenue and profit compound annual growth rates over the next three years will reach double digits and 15% to 20%
According to the Zhitong Finance APP, Credit Lyonnais has released a research report reiterating its "highly confident outperform" rating for Tencent Holdings Limited (00700), predicting that the first quarter performance will be robust, with revenue expected to grow by 10% year-on-year to RMB 175.3 billion. Adjusted earnings before interest and taxes (EBIT) are expected to reach RMB 67.3 billion, a year-on-year increase of 15%, mainly benefiting from the growth of the gaming and advertising businesses, with gaming revenue expected to grow by 15.8% and online advertising revenue expected to increase by 17.4% year-on-year.
In the fourth quarter of last year, Tencent strengthened its GPU procurement, anticipating that its cloud computing business may accelerate growth in the second half of this year. Credit Lyonnais believes that Tencent is relatively defensive amid tariff uncertainties, maintaining a target price of HKD 645, and forecasting that the company's revenue and profit compound annual growth rates over the next three years will reach double-digit percentages and 15% to 20%, respectively
