Futu: Raises Tencent Holdings Limited target price to HKD 665, maintains "Buy" rating
Credit Suisse released a research report stating that it has raised the target price for Tencent Holdings from HKD 646, an increase of 2.9% to HKD 665, maintaining a "Buy" investment rating. Credit Suisse believes that Tencent is a global leader in mobile gaming, with a strong track record of developing successful games. HoK has achieved great success, with DAU reaching a historical high, and positive feedback on new games supports the investment portfolio strategy, which should drive long-term growth. The firm believes that content is king in Tencent's video advertising. Credit Suisse stated that if Tencent successfully launches strong new games, and due to macroeconomic recovery, online advertising growth exceeds expectations, with losses from the cloud business being less than expected, the target price valuation based on SOTP calculation could rise to HKD 760. Conversely, the firm indicated that if Tencent's new game launches fail, under macro headwinds, online advertising growth falls below expectations, and there is a need to heavily promote payment subsidies and capital expenditures in cloud computing, the estimated downside based on SOTP calculation would be HKD 400
According to Zhitong Finance APP, Jefferies released a research report stating that it has raised the target price for Tencent Holdings (00700) from HKD 646, an increase of 2.9% to HKD 665, while maintaining a "Buy" investment rating. Jefferies believes that Tencent is a global leader in mobile gaming, with a strong track record of developing successful games. HoK has achieved great success, with DAU reaching a historical high, and positive feedback on new games supports the investment portfolio strategy, which should drive long-term growth. The firm believes that content is king in Tencent's video advertising.
Jefferies stated that if Tencent successfully launches strong new games, and due to macroeconomic recovery, online advertising growth exceeds expectations, with losses from the cloud business being less than expected, the target price valuation based on SOTP calculation could rise to HKD 760. Conversely, the firm indicated that if Tencent's new game launches fail, under macro headwinds, online advertising growth falls short of expectations, and there is a need to heavily invest in payment subsidies and capital expenditures in cloud computing, the estimated downside based on SOTP calculation would be HKD 400
