[ET Net News Agency, 19 July 2018] Jefferies Research cut its target price for Tencent
Holdings (00700) to HK$497 from HK$515, and reiterated its "buy" rating.
The research house said market expectation on a sluggish 2Q mobile game has been largely
reflected in Tencent's recent share price weakness. Although visibility to PUBG
monetization remains low, Jefferies expects 2H recovery from new title contribution and
stronger pipeline.
It revised down 2Q/FY2018 revenue by 5%/3% to reflect near-term mobile game headwind.
But it believes Tencent's leadership in content (games, music, video) and ad share gain
thesis remains intact. (KL)