[ET Net News Agency, 15 November 2019] Nomura lifted its target price for Tencent
Holdings (00700) to HK$437 from HK$428 and maintained its "buy" rating.
The research house said Tencent's revenues and non-GAAP EPS in 3Q were both in line with
Nomura's assumptions. Mobile gaming, social ads, Fintech and cloud services continued to
deliver impressive growth, while PC gaming and media ads remained weak.
Nomura maintained its forecast that ads business will likely see accelerated growth in
4Q and 2020 driven by an ad spending spree by e-commerce advertisers and relaxed
regulation on video ads. Nomura trimmed its FY2019 non-GAAP EPS forecast by 3% on lowered
non-operating profit and increase FY2020 EPS by 17%. (KL)