Guotou Securities International Maintains "Buy" Rating on TENCENT with HK$680 Target Price

Deep News05-17 11:21

Guotou Securities International has released a research report stating that TENCENT (00700) possesses robust operating cash flow, sufficient to support its strategic transformation. The report further indicates that profit increments from the company's core businesses are expected to cover the costs associated with AI investments.

The brokerage firm has set a target price of HK$680.00 for the company. This valuation is based on a 15x PE multiple for the estimated value-added services in 2026, a 15x PE for the advertising business, an 8x PS for the fintech and cloud services segment, and a valuation coefficient of 0.9x. This target price corresponds to estimated PE ratios of 18.9x for 2026 and 16.0x for 2027, representing a potential upside of 47.8% from the recent closing price. Consequently, the firm maintains its "Buy" rating on the stock.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment