Stock Performance Predictions: BofA Securities forecasts divergent stock performance in China's internet sector for the year, with AI expected to lead growth while macroeconomic conditions pressure consumer and corporate spending.
Investment Preferences: The report favors AI and online gaming stocks over e-commerce, highlighting TENCENT as the top pick for its AI-driven growth and stable market position, while BABA-W is recommended for its potential in AI and e-commerce.
Digital Entertainment Focus: In the digital entertainment space, BofA Securities recommends BILIBILI-W and TME-SW for their online gaming prospects, while also favoring JD HEALTH and TRIP.COM-S in their respective sectors.
Neutral Stance on Certain Stocks: The broker maintains a neutral outlook on Pinduoduo and Meituan, indicating a cautious approach towards these stocks amidst the current market conditions.
Wall Street analysts forecast 00700 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00700 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 00700 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00700 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 633.000
Low
Averages
High
Current: 633.000
Low
Averages
High
JPMorgan
JPMorgan
maintain
$750
Al Analysis
2025-12-17
Reason
JPMorgan
JPMorgan
Price Target
$750
Al Analysis
2025-12-17
maintain
Reason
The analyst rating from JPMorgan is based on several key factors:
1. Core Advantage: TENCENT's management highlighted that the company's strength lies in its replicable business model, which allows for localization and global scaling, rather than relying on single blockbuster products.
2. Market Potential: The estimated market size for shooting games is projected to reach US$38 billion by 2025, indicating significant growth potential in the gaming sector.
3. Business Model: TENCENT's 'three-engine' model of publishing, developing, and investing in game studios positions the company well to capitalize on the rapidly growing gaming market.
4. Long-term Growth: JPMorgan views TENCENT as a 'multi-year profit compound growth stock' that is leveraging AI and global expansion to improve business efficiency and quality, rather than focusing solely on cost-cutting or short-term gains.
5. Optimism About Growth Cycle: The overall outlook for TENCENT's growth cycle is positive, leading to the Overweight rating and a target price of $750.
These factors collectively contribute to the optimistic analyst rating for TENCENT.
Daiwa
maintain
$750
2025-12-16
Reason
Daiwa
Price Target
$750
2025-12-16
maintain
Reason
Daiwa's analyst rating for Tencent is a "Buy" with a target price of HKD750. The reasons for this positive outlook include:
1. Global Best Practices: Daiwa believes Tencent is effectively exporting best practices of "Games-as-a-Service" globally, which enhances the appeal of its games by blending Chinese and international influences.
2. Optimism in International Expansion: The broker is optimistic about Tencent's development and commercialization pace in expanding its gaming business internationally.
3. AI and Cloud Capabilities: Daiwa highlights Tencent's unparalleled AI and cloud capabilities, emphasizing the crucial role of AI throughout the entire game lifecycle.
4. Potential Risks: While the outlook is positive, Daiwa notes that a major potential downside risk is a miss in game sales.
Overall, these factors contribute to Daiwa's confidence in Tencent's future performance in the gaming sector.
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Goldman Sachs
Goldman Sachs
Buy
maintain
$770
2025-12-16
Reason
Goldman Sachs
Goldman Sachs
Price Target
$770
2025-12-16
maintain
Buy
Reason
The analyst rating from Goldman Sachs is a "Buy" due to several key factors:
1. Expansion of Tencent Cloud: The company is strengthening its presence in key international markets, including ASEAN, Northeast Asia, Europe, the Middle East, and the Americas, which is expected to enhance its brand recognition.
2. Secured Large Project Orders: Tencent Cloud has secured multiple large project orders, indicating strong demand and potential for growth.
3. AI Applications: Tencent is positioned as a beneficiary of AI applications within China's leading Internet sector, which Goldman Sachs believes will drive long-term growth across its core businesses.
4. Unique Ecosystem and Assets: The combination of Tencent's WeChat ecosystem, global gaming assets, and diversified monetization capabilities is expected to support compound profit growth.
These factors contribute to Goldman Sachs' confidence in Tencent's future performance, leading to the maintained Buy rating and a target price of HKD770.
Daiwa
maintain
$750
2025-12-12
Reason
Daiwa
Price Target
$750
2025-12-12
maintain
Reason
The analyst rating from Daiwa for TENCENT is a "Buy" due to several key reasons:
1. Prioritization of GPU Resources: TENCENT is focusing on utilizing GPU resources for internal model training and enhancing its core businesses, which is expected to yield more certain returns.
2. AI Adoption: The integration of AI is anticipated to amplify the value of WeChat's core interface, improving functionalities such as chat, search, video accounts, content summarization, interaction, and mini-programming.
3. Gaming Business Development: The adoption of AI is expected to boost TENCENT's gaming business by reducing costs and refining game content innovation. The company plans to update existing games and launch new evergreen games, which contributes to confidence in its growth prospects.
4. Top Pick in the Sector: Daiwa emphasizes that TENCENT is its top pick in the Chinese internet sector, reinforcing their positive outlook on the company's future performance.
Overall, these factors lead Daiwa to maintain a positive rating with a target price of HKD750.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
