[ET Net News Agency, 17 July 2018] Citi Research trimmed its target price for Tencent
Holdings (00700) to HK$514 from HK$524, and reiterated its "buy" rating.
The research house had previously modeled 5.4% below consensus for 2Q revenues estimate
and 7.6% below in EPS forecast. With recent estimates revision from a number of brokers,
Citi believes a potential soft 2Q mainly attributable to weak gaming revenues has become
largely priced in.
Looking forward to 3Q/2H, Citi believes the gaming resource distraction experienced in
2Q has been gradually recovering with a number of decent games released towards end
June/early July.
Together with Fortnite PC launching soon and positive seasonality in summer months, it
expects a healthy qoq rebound of PC and smartphone games in 3Q.
In addition, Citi believes the continued traction of certain mini games and improving
traffic conversion of transaction-related mini programs likely to contribute to increasing
ad revenues for GuangDianTong in coming months. (KL)
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00700 TENCENT
Nominal 
402.200 +14.600 (+3.767%) Others
17/07/2018 14:51
[I-bank focus]Citi trims Tencent Holdings (00700) to HK$514
| Remark: | Real time quote last updated: 24/09/2024 16:32 |
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