[ET Net News Agency, 30 October 2020] Nomura raised its target price for Tencent
Holdings (00700) to HK$703 from HK$655 to reflect the higher valuation for Tencent Fintech
and maintained its "buy" rating.
The research house expects Tencent's 3Q revenue to grow by 27% to CNY124bn. Non-GAAP
operating margin is likely to expand 0.4pp to 28%, on a 1.6pp y-y gross margin expansion.
It sees non-GAAP EPS to come in at CNY3.33, up 31%.
While the market was taken by surprise by the abrupt delay of mobile DNF (Dungeon &
Fighter), Nomura was encouraged to see the excitement of overseas gamers towards mobile
LoL (League of Legends) with the recent start of open beta testing. (KL)