UBS: Raises Tencent Holdings Limited's target price to HKD 710 and maintains a "Buy" rating
UBS released a research report stating that it has raised the target price for Tencent Holdings from HKD 700, an increase of 1.4% to HKD 710, maintaining a "Buy" investment rating. UBS pointed out that Tencent's first fiscal quarter performance exceeded expectations, and the bank has raised its earnings per share forecast for Tencent for the years 2025-2027 by 1-2%, above market consensus. During the earnings conference, management repeatedly used the term "long runway" to describe the monetization of various business lines including online gaming, advertising, e-commerce, and artificial intelligence (AI), and clearly outlined both short-term and long-term drivers. Although the market consensus valuation for Tencent is higher than its peers (with a forecasted price-to-earnings ratio of 17 times for 2025, and a compound annual growth rate of 16% for earnings per share from 2024 to 2026), Tencent has unique high-profit visibility, but the bank believes it will still face growth limits in the future
According to the Zhitong Finance APP, UBS has released a research report stating that it has raised the target price for Tencent Holdings Limited (00700) from HKD 700 to HKD 710, an increase of 1.4%, while maintaining a "Buy" investment rating. UBS indicated that Tencent's first-quarter performance exceeded expectations, and the bank has raised its earnings per share forecast for Tencent for the fiscal years 2025-2027 by 1-2%, above market consensus.
During the earnings conference, management repeatedly used the term "long runway" to describe the monetization of various business lines including online gaming, advertising, e-commerce, and artificial intelligence (AI), and clearly outlined both short-term and long-term drivers. Although the market consensus valuation for Tencent is higher than its peers (with a forecasted price-to-earnings ratio of 17 times for 2025, and a compound annual growth rate of 16% for earnings per share from 2024 to 2026), the bank believes that Tencent will still face growth limitations in the future
