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Daiwa

maintain

$750

2025-12-12

New

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.

Daiwa

Price Target

$750

2025-12-12

maintain

New

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.

Daiwa

maintain

$117

2025-12-02

Reason

The article provides analyst ratings for various stocks, including Alibaba Group Holding (BABA.US), which has a "Buy" rating with a target price of US$225. The reasons for the ratings are not explicitly detailed in the provided text. However, the context suggests that the analysts are optimistic about the future performance of these companies, as indicated by the "Buy" ratings for several stocks, including Baidu, NetEase, JD.com, and others. For Meituan-W (03690.HK), which has a "Neutral" rating, the article mentions that Daiwa expects the Keeta loss to widen next year, which may have influenced the more cautious stance. Overall, the ratings seem to reflect analysts' expectations of growth or recovery in the respective companies, while the neutral or lower ratings may indicate concerns about specific challenges or losses.

Daiwa

Price Target

$117

2025-12-02

maintain

The article provides analyst ratings for various stocks, including Alibaba Group Holding (BABA.US), which has a "Buy" rating with a target price of US$225. The reasons for the ratings are not explicitly detailed in the provided text. However, the context suggests that the analysts are optimistic about the future performance of these companies, as indicated by the "Buy" ratings for several stocks, including Baidu, NetEase, JD.com, and others. For Meituan-W (03690.HK), which has a "Neutral" rating, the article mentions that Daiwa expects the Keeta loss to widen next year, which may have influenced the more cautious stance. Overall, the ratings seem to reflect analysts' expectations of growth or recovery in the respective companies, while the neutral or lower ratings may indicate concerns about specific challenges or losses.

Morgan Stanley

Overweight

maintain

2025-12-02

Reason

The analyst rating from Morgan Stanley regarding ByteDance's Doubao AI smartphone assistant is influenced by the belief that while the feature envisions a rich ecosystem, its execution faces significant challenges. The report highlights that major smartphone OEMs and super apps are more inclined to develop their own AI assistants rather than collaborate with ByteDance, which poses substantial obstacles for OEM cooperation. The need for deep technical cooperation and commercial negotiations, along with the potential redefinition of smartphone value propositions, further complicates the implementation of the Doubao assistant. Consequently, Morgan Stanley maintains an Overweight rating on app-related stocks like TENCENT, BABA-W, and MEITU, viewing them as top picks for AI investment despite the challenges faced by ByteDance.

Morgan Stanley

Overweight

Price Target

2025-12-02

maintain

The analyst rating from Morgan Stanley regarding ByteDance's Doubao AI smartphone assistant is influenced by the belief that while the feature envisions a rich ecosystem, its execution faces significant challenges. The report highlights that major smartphone OEMs and super apps are more inclined to develop their own AI assistants rather than collaborate with ByteDance, which poses substantial obstacles for OEM cooperation. The need for deep technical cooperation and commercial negotiations, along with the potential redefinition of smartphone value propositions, further complicates the implementation of the Doubao assistant. Consequently, Morgan Stanley maintains an Overweight rating on app-related stocks like TENCENT, BABA-W, and MEITU, viewing them as top picks for AI investment despite the challenges faced by ByteDance.

M Stanley

maintain

2025-11-27

Reason

The analyst rating from JPMorgan's 2026 outlook report for Hong Kong stocks is based on the expectation that certain Chinese companies will benefit from the AI supercycle. The report highlights top picks among Cloud Service Providers (CSPs) and Artificial Intelligence Data Centers (AIDCs), indicating a positive outlook for these sectors. Specifically, companies like Alibaba (BABA-W) and Tencent are noted for their potential in cloud intelligence, while other firms in the AIDC space are also recognized for their growth prospects. The overall sentiment reflects confidence in the growth of these sectors driven by advancements in artificial intelligence.

M Stanley

Price Target

2025-11-27

maintain

The analyst rating from JPMorgan's 2026 outlook report for Hong Kong stocks is based on the expectation that certain Chinese companies will benefit from the AI supercycle. The report highlights top picks among Cloud Service Providers (CSPs) and Artificial Intelligence Data Centers (AIDCs), indicating a positive outlook for these sectors. Specifically, companies like Alibaba (BABA-W) and Tencent are noted for their potential in cloud intelligence, while other firms in the AIDC space are also recognized for their growth prospects. The overall sentiment reflects confidence in the growth of these sectors driven by advancements in artificial intelligence.

BofA Securities

Buy

maintain

$780

2025-11-19

Reason

The analyst rating for TENCENT (00700.HK) from BofA Securities is based on several key factors: 1. Capital Expenditure: TENCENT reported a capital expenditure of RMB13 billion for the last quarter, which was below market expectations. This shortfall was attributed to disruptions in chip supply, indicating potential challenges in operational capacity. 2. AI Development: The management disclosed that additional computing resources were leased for AI development, suggesting a commitment to enhancing their capabilities in this area. 3. Competitive Position: Despite TENCENT's AI application "Yuanbao" having fewer daily active users compared to competitors like ByteDance's "Doubao" and Alibaba's "Quark", BofA Securities believes this is due to different promotional strategies rather than differences in the underlying technology. 4. Market Confidence: BofA Securities maintains confidence in TENCENT's competitive edge in the AI sector in China, bolstered by the strong position of WeChat and its extensive mobile ecosystem of content and services. 5. Rating and Target Price: BofA Securities has reiterated TENCENT as its industry top pick, maintaining a "Buy" rating with a target price of HKD780. Overall, the combination of strategic investments in AI, a strong market position, and confidence in future growth prospects underpins the positive analyst rating.

BofA Securities

Buy

Price Target

$780

2025-11-19

maintain

The analyst rating for TENCENT (00700.HK) from BofA Securities is based on several key factors: 1. Capital Expenditure: TENCENT reported a capital expenditure of RMB13 billion for the last quarter, which was below market expectations. This shortfall was attributed to disruptions in chip supply, indicating potential challenges in operational capacity. 2. AI Development: The management disclosed that additional computing resources were leased for AI development, suggesting a commitment to enhancing their capabilities in this area. 3. Competitive Position: Despite TENCENT's AI application "Yuanbao" having fewer daily active users compared to competitors like ByteDance's "Doubao" and Alibaba's "Quark", BofA Securities believes this is due to different promotional strategies rather than differences in the underlying technology. 4. Market Confidence: BofA Securities maintains confidence in TENCENT's competitive edge in the AI sector in China, bolstered by the strong position of WeChat and its extensive mobile ecosystem of content and services. 5. Rating and Target Price: BofA Securities has reiterated TENCENT as its industry top pick, maintaining a "Buy" rating with a target price of HKD780. Overall, the combination of strategic investments in AI, a strong market position, and confidence in future growth prospects underpins the positive analyst rating.

Nomura

maintain

$215

2025-11-17

Reason

Nomura maintained a Buy rating on Alibaba due to several key factors. Firstly, the firm noted that Alibaba is in a more advantageous position compared to Tencent regarding capital expenditure on AI cloud, as it has established a robust AI chip supply chain. This foresight is expected to lead to a significant increase in Alibaba's AI capex, projected to spike 83% year-over-year to RMB32 billion, which would account for 13% of the quarter's revenue. Additionally, Nomura's analysis suggests that if the US government fails to provide strong evidence for its allegations against Alibaba, any actions taken could have serious implications for the company and broader US-China relations. The broker's target price for Alibaba's US stock remains at US$215, reflecting a favorable valuation outlook.

Nomura

Price Target

$215

2025-11-17

maintain

Nomura maintained a Buy rating on Alibaba due to several key factors. Firstly, the firm noted that Alibaba is in a more advantageous position compared to Tencent regarding capital expenditure on AI cloud, as it has established a robust AI chip supply chain. This foresight is expected to lead to a significant increase in Alibaba's AI capex, projected to spike 83% year-over-year to RMB32 billion, which would account for 13% of the quarter's revenue. Additionally, Nomura's analysis suggests that if the US government fails to provide strong evidence for its allegations against Alibaba, any actions taken could have serious implications for the company and broader US-China relations. The broker's target price for Alibaba's US stock remains at US$215, reflecting a favorable valuation outlook.

BOCOMI

upgrade

$700 -> $729

2025-11-17

Reason

The analyst rating for TENCENT (00700.HK) was maintained at "Buy" by BOCOMI due to several positive factors highlighted in their research report. The company's 3Q25 results exceeded expectations, with a 15% year-over-year revenue growth that was 4% above BOCOMI's forecast. Key revenue segments, including games, social services, marketing services, and fintech, showed significant growth, contributing to a 22% increase in gross profit. Additionally, TENCENT's gross profit margin improved to 56.4%, supported by better performance in domestic games and cost optimization in cloud services. The adjusted EPS also surpassed estimates, increasing by 19%. BOCOMI anticipates stable revenue and profit growth moving forward, prompting them to raise the target price from $700 to $729.

BOCOMI

Price Target

$700 -> $729

2025-11-17

upgrade

The analyst rating for TENCENT (00700.HK) was maintained at "Buy" by BOCOMI due to several positive factors highlighted in their research report. The company's 3Q25 results exceeded expectations, with a 15% year-over-year revenue growth that was 4% above BOCOMI's forecast. Key revenue segments, including games, social services, marketing services, and fintech, showed significant growth, contributing to a 22% increase in gross profit. Additionally, TENCENT's gross profit margin improved to 56.4%, supported by better performance in domestic games and cost optimization in cloud services. The adjusted EPS also surpassed estimates, increasing by 19%. BOCOMI anticipates stable revenue and profit growth moving forward, prompting them to raise the target price from $700 to $729.

CMSI

upgrade

$700 -> $766

2025-11-17

Reason

The analyst rating for TENCENT (00700.HK) was upgraded to Overweight by CMSI due to the company's better-than-expected results for 3Q25, with revenue and Non-IFRS net profit exceeding forecasts by 2% and 7%, respectively. The year-over-year growth of 15% in revenue and 18% in net profit, along with improved profit margins across all segments and robust growth momentum driven by AI empowerment, contributed to this positive outlook. Consequently, CMSI raised its target price for TENCENT from HKD700 to HKD766.

CMSI

Price Target

$700 -> $766

2025-11-17

upgrade

The analyst rating for TENCENT (00700.HK) was upgraded to Overweight by CMSI due to the company's better-than-expected results for 3Q25, with revenue and Non-IFRS net profit exceeding forecasts by 2% and 7%, respectively. The year-over-year growth of 15% in revenue and 18% in net profit, along with improved profit margins across all segments and robust growth momentum driven by AI empowerment, contributed to this positive outlook. Consequently, CMSI raised its target price for TENCENT from HKD700 to HKD766.

Nomura

Buy

maintain

$757 -> $775

2025-11-17

Reason

The analyst rating for Tencent (00700.HK) was maintained as a Buy, with the target price raised from HKD 757 to HKD 775. This positive rating is based on the company's solid 3Q results, despite acknowledging challenges due to AI chip supply constraints that led to a downward revision of FY2025 capex guidance. The management's expectation that their key AI assets, Yuanbao and Hunyuan, are immune from the supply shortage also supports the positive outlook. However, the report notes that Tencent's investment in AI infrastructure and large language models may have been insufficient compared to peers like ByteDance and Alibaba.

Nomura

Buy

Price Target

$757 -> $775

2025-11-17

maintain

The analyst rating for Tencent (00700.HK) was maintained as a Buy, with the target price raised from HKD 757 to HKD 775. This positive rating is based on the company's solid 3Q results, despite acknowledging challenges due to AI chip supply constraints that led to a downward revision of FY2025 capex guidance. The management's expectation that their key AI assets, Yuanbao and Hunyuan, are immune from the supply shortage also supports the positive outlook. However, the report notes that Tencent's investment in AI infrastructure and large language models may have been insufficient compared to peers like ByteDance and Alibaba.

JPMorgan

maintain

$685

2025-11-14

Reason

The analyst rating for TENCENT (00700.HK) is "Overweight" due to the company's strong 3Q25 results, which exceeded market expectations for revenue and adjusted EPS. Specifically, revenue and adjusted EPS surpassed expectations by 2% and 7%, respectively, while adjusted operating profit and net profit both increased by 18% year-over-year, outpacing revenue growth. Additionally, the decrease in capital expenditure by 32% quarter-over-quarter is seen as a key point for management to address, which may positively influence the share price in the short term. JPMorgan has set a target price of $685 for the stock.

JPMorgan

Price Target

$685

2025-11-14

maintain

The analyst rating for TENCENT (00700.HK) is "Overweight" due to the company's strong 3Q25 results, which exceeded market expectations for revenue and adjusted EPS. Specifically, revenue and adjusted EPS surpassed expectations by 2% and 7%, respectively, while adjusted operating profit and net profit both increased by 18% year-over-year, outpacing revenue growth. Additionally, the decrease in capital expenditure by 32% quarter-over-quarter is seen as a key point for management to address, which may positively influence the share price in the short term. JPMorgan has set a target price of $685 for the stock.

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