[ET Net News Agency, 22 February 2021] Morgan Stanley lifted its target price for
Tencent Holdings (00700) to HK$820 from HK$720 and maintained its "overweight" rating.
The research house concluded the influx of mobile gamers globally in 2020 will help
maintain mobile gaming's status as the largest and fastest-growing gaming segment. Morgan
now forecasted global mobile game TAM (total addressable market) to rise at a 15% CAGR, to
US$167bn by 2024, 40% above its previous projection of US$119bn made less than a year ago.
Morgan thinks Tencent is well-positioned to capture this sizeable opportunity in the
next 2-3 years, organically and inorganically, given its superior development/distribution
capability with diversified genres.
It estimated Tencent's mobile game revenue will reach Rmb304bn by 2024, implying a 20%
CAGR, 2020-24 (versus its previous 18% and consensus' 18%). (KL)