[ET Net News Agency, 13 August 2020] CMB International Securities (CMBIS) lifted its
target price for Tencent Holdings (00700) to HK$624 from HK$500 and maintained its "buy"
rating.
The research house said Tencent delivered upbeat 2Q results. CMBIS remains bullish on
its mobile game momentum with globalization and upcoming strong pipeline. It expects
limited impact from US ban on Wechat (< 2%) and mobile DNF delay.
CMBIS raised its EPS forecasts by 6%/5%/5% in FY2020/21/22 for stronger game. It said
that Tencent could be more defensive under COVID-19 impact, and CMBIS expects its strong
mobile games, new initiatives expansion and miniprograms potential to unlock its secular
growth. (KL)