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<Research>G Sachs Adds TENCENT's TP to $590, Lifts 2025-26 Revenue & Earnings Forecasts
Recommend 10 Positive 21 Negative 7 |
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TENCENT (00700.HK)'s 4Q24 results delivered a solid performance, Goldman Sachs remarked in its research report. By ramping up investment in AI, the management is seeking long-term growth. Yet, a significant surge in AI-related capital expenditure during the period has drawn investor attention to its development potential and future profit margin prospects. Based on its latest results, Goldman Sachs raised its 2025-26 revenue and EPS forecasts for TENCENT by 2-3%. It is expected that AI could accelerate growth in advertising, cloud services, and e-commerce-related business services in 2025-26. Goldman Sachs currently expects TENCENT's 1Q25 and full-year revenue to grow by 10% YoY, compared to 10% and 8% in its original forecast, while EPS will swell by 20% and 14%, compared to 17% and 14% in its original forecast. Meanwhile, driven by the development of AI-powered advertising technology and the expanding WeChat ecosystem, TENCENT's marketing services business is predicted to climb by 17% and 12% YoY in 2025-26 (previously forecasted to rise by 14% and 11%). Goldman Sachs elevated its target price for TENCENT from $534 to $590, with a Buy rating. AAStocks Financial News |
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