Market Performance: The Hong Kong stock market experienced a decline on August 20, influenced by a 1.5% drop in the Nasdaq and local earnings season, with the HSI closing down 0.6% at 24,980.
Company Earnings: XIAOMI reported a significant profit increase of over 130% for Q2 but saw its stock dip due to concerns over smartphone margins and EV production; SUNNY OPTICAL's shares rose 6.6% following a 53% profit increase.
Stock Movements: Several tech stocks, including TENCENT, BABA-W, and KUAISHOU-W, faced declines ranging from 0.7% to 4.7%, while POP MART surged 8.6% to a record high after reporting a nearly fourfold profit increase.
Short Selling Activity: Notable short selling activity was observed across various companies, with significant ratios reported for BIDU-SW, KUAISHOU-W, and others, indicating investor caution amidst fluctuating stock performances.
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: 597.500
Low
Averages
High
Current: 597.500
Low
Averages
High
UOB Kay Hian
UOB Kay Hian
maintain
$800
2026-01-22
New
Reason
UOB Kay Hian
UOB Kay Hian
Price Target
$800
AI Analysis
2026-01-22
New
maintain
Reason
The analyst rating for TENCENT (00700.HK) is maintained as a "Buy" by UOB Kay Hian due to several positive factors. Despite facing macroeconomic challenges and the impact of advertising spending tax, TENCENT is expected to achieve robust revenue growth of 13% year-over-year in 4Q25. Key catalysts for this growth include the launch of flagship new games in 2026, improvements in AI-driven advertising placement efficiency, and the introduction of AI-powered mini-program code development tools on WeChat. The target price remains unchanged at HKD800.
Daiwa
Daiwa
Buy
downgrade
$750 -> $725
2026-01-21
New
Reason
Daiwa
Daiwa
Price Target
$750 -> $725
2026-01-21
New
downgrade
Buy
Reason
The analyst rating for TENCENT (00700.HK) was reaffirmed as a "Buy" despite a lowered target price from HKD750 to HKD725. The reasons for this rating include expectations of a seasonal slowdown in the domestic gaming business and stabilization in the international gaming business after a strong previous quarter. Additionally, the recruitment of AI talent and GPU leasing costs are anticipated to pressure operating expenses. The broker adjusted its revenue forecasts, estimating a 12% year-over-year increase in local gaming revenue for 4Q25, but a 13% quarter-over-quarter decline, leading to a reduction in TENCENT's EPS forecast for 2026-27 by 1-2%.
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Goldman Sachs
Goldman Sachs
Buy
downgrade
$770 -> $752
2026-01-19
New
Reason
Goldman Sachs
Goldman Sachs
Price Target
$770 -> $752
2026-01-19
New
downgrade
Buy
Reason
The analyst rating from Goldman Sachs for TENCENT is a "Buy" due to several key reasons:
1. Core Business Growth: Goldman Sachs believes that TENCENT's core businesses, which include gaming and advertising, will continue to experience low- to mid-teens growth annually. This is supported by the sustainability of its evergreen games and a strong product pipeline.
2. Monetization and AI Benefits: The company is expected to benefit from advancements in monetization strategies and the integration of AI into its advertising ecosystem, which could enhance revenue generation.
3. AI Application Potential: Goldman Sachs views TENCENT as an important player in the application of AI, suggesting that its involvement in this area could drive future growth.
4. Overall Sector Outlook: The broader gaming and entertainment sector in China has shown strong performance, and Goldman Sachs considers the risk-reward profile for the sector to still be attractive, particularly for companies with new growth potential.
Despite lowering the target price from HKD770 to HKD752, the positive outlook on TENCENT's growth prospects and its strategic positioning in the market supports the continued "Buy" rating.
Nomura
Buy
maintain
$775
2026-01-19
New
Reason
Nomura
Price Target
$775
2026-01-19
New
maintain
Buy
Reason
Nomura maintained a "Buy" rating on TENCENT due to expectations of a 12% year-over-year revenue increase in 4Q25, which aligns with market consensus, and a projected 15% growth in non-IFRS net profit, despite being slightly lower than the latest market forecast. The anticipated increase in gross margin and operating profit margin further supports their positive outlook, leading to a target price of $775.
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.
