Citi: Raises Tencent Holdings' adjusted net profit forecast for this year and next, target price increased to HKD 740
Citi released a research report stating that Tencent's second-quarter performance exceeded expectations, with revenue and adjusted operating profit growing by 15% and 19% year-on-year, surpassing expectations by 4% and 8%, respectively. The three core businesses—online games, advertising, and cloud services—each achieved approximately 20% growth. Citi is optimistic about the launch of the mobile game "Valorant" within the month and the continuous empowerment of various businesses by AI technology, raising the adjusted net profit forecasts for 2025 and 2026 by 2% and 3%, respectively. The target price has been raised from HKD 710 to HKD 740, maintaining a "highly confident outperform" rating
According to Zhitong Finance APP, Citi released a research report stating that Tencent Holdings (00700) exceeded expectations in its second-quarter performance, with revenue and adjusted operating profit increasing by 15% and 19% year-on-year, surpassing expectations by 4% and 8%, respectively. The three core businesses—online games, advertising, and cloud services—each achieved approximately 20% growth. Citi is optimistic about the launch of the mobile game "Valorant" within the month and the continuous empowerment of various businesses by AI technology, raising the adjusted net profit forecasts for 2025 and 2026 by 2% and 3%, respectively. The target price has been increased from HKD 710 to HKD 740, maintaining a "highly confident outperform" rating
