[ET Net News Agency, 10 October 2018] J.P. Morgan lowered its target price for Tencent
Holdings (00700) to HK$400 from HK$460, and maintained its "overweight" rating.
The research house revised down its 2018/19/20 revenue forecasts by 2%/7%/9% due to
increasing uncertainty around the suspension of online games approval, as well as a
challenging advertising outlook.
JPM turned more cautious on online games outlook in 2H 2018 and 2019 in light of an
uncertain regulatory environment. It thinks the probability for a potential resumption of
online games approvals within 2018 is decreasing, and there's no clear indication of when
it could be resumed in 2019. It also cut its 2018/19/20 non-GAAP EPS estimates by
3%/11%/12%. (KL)