Morgan Stanley: Maintains "overweight" rating on Tencent (00700), target price of HKD 430.
Daiwa believes that Tencent, among the leading internet companies in mainland China, used to have a valuation premium due to strong revenue growth and transparent profitability.
Morgan Stanley released a research report stating that Tencent (00700) is expected to sustain its natural growth in profit margins, with steady growth in its video account advertising business. The report also suggests that there is potential for improved shareholder returns. Morgan Stanley maintains a "Buy" rating with a target price of HKD 430 and replaces Alibaba (BABA.US) as the bank's preferred stock.
The bank believes that Tencent has historically had a valuation premium in the mainland internet sector due to strong revenue growth and transparent profitability. The recent accelerated share buybacks have also supported the stock's performance. Positive factors driving profit growth include globalizing the gaming business, monetizing social network advertising, providing more financial technology products, and strategic enhancements in consumer and industrial internet.
Related Articles
Don't do "price substitution", do "high quality": Banu, with a guest average spending of 139 yuan, is opening up a new path in the territory of HAIDILAO.
A-share midday report: The index fluctuates, with the ChiNext index up over 2%. "Old listed stocks" faced selling pressure again, with over 4400 individual stocks declining.
HK Stock Market Move | Muyuan Foods Group (02714) fell nearly 4% again. The company has already completed more than half of its cost reduction target. The full year slaughter volume is expected to increase by up to 20%.
Don't do "price substitution", do "high quality": Banu, with a guest average spending of 139 yuan, is opening up a new path in the territory of HAIDILAO.
A-share midday report: The index fluctuates, with the ChiNext index up over 2%. "Old listed stocks" faced selling pressure again, with over 4400 individual stocks declining.
HK Stock Market Move | Muyuan Foods Group (02714) fell nearly 4% again. The company has already completed more than half of its cost reduction target. The full year slaughter volume is expected to increase by up to 20%.
RECOMMEND
