[ET Net News Agency, 27 July 2017] Jefferies Research raised its target price for
Tencent Holdings (00700) to HK$352 from HK$303, and maintained its "buy" rating.
The research house took a deep dive across Tencent's growth drivers. It is encouraged by
recent increase in WeChat ad load and formats; rising competitiveness in payment, online
literature and music subscription.
Impact on mobile game from HoK playtime restriction is limited, Jefferies said.
It changed to blended average of SOTP and DCF methodology to better reflect the value of
Tencent's multi-business model. It also revised up its FY2017/18 revenue estimates by
2.5%/5% and profit estimates by 2.6%/14.8%. (KL)