[ET Net News Agency, 28 October 2020] Macquarie Research raised its target price for
Tencent Holdings (00700) to HK$815 from HK$797 and maintained its "outperform" rating.
The research house said it has had several rounds of discussions with Tencent in recent
months, and made a more thorough comparison of financials and KPIs with Ant Group's
disclosure and confirmed IPO pricing.
Based on that, Macquarie refurbished its WeChat Pay assumptions. It also crossed
reference Ant's purported valuation, which suggests WeChat Pay could net a
US$264bn-US$346bn value by 2022.
It believes Tencent is more profitable in payments than Ant and is strategically more
comfortable continuing to scale its payment operations than rapidly ramp up value-added
services in financial services. (KL)