[ET Net News Agency, 9 June 2020] Huatai Research lifted its target price for Tencent
Holdings (00700) to HK$506 from HK$446.8 and maintained its "buy" rating.
The research house thinks Tencent's core online game and advertising businesses will
continue to entrench their market leadership. It believes that the fintech and business
services segment will continue to drive revenue growth in the long term and that its
margin profile will improve.
Huatai lifted its 2020/2021 non-IFRS net profit forecasts by 4%/4.5% to reflect core
business margin expansion. It forecast a 2020-2022 non-IFRS net profit CAGR of 20.4%, and
marked Tencent's investment portfolio to market. (KL)