- Benchmark analyst Fawne Jiang reiterated a Buy on Tencent Holding Ltd (OTC: TCEHY) and cut the price target to HK$345.00.
- With China’s growth outlook reset and the high level of internet penetration, he expects that the early-stage hypergrowth for Big Tech platforms in China is behind him.
- Jiang saw pockets of opportunities and anticipated deep-pocketed and innovative platforms will be diligently repositioning, as he had observed in Tencent’s recent efforts in their overseas game expansion and SaaS initiatives.
- Admittedly these efforts will take time to translate into meaningful topline impact.
- In the near term, Jiang anticipates muted growth across segments, particularly in games and business services, and has lowered his FY22 and FY23 estimates.
- The company will continue focusing on cost savings and capital returns.
- Excluding its investment portfolio, Tencent’s pace and magnitude of growth recovery remain unclear.
- Mizuho analyst James Lee maintained a Neutral with a HK$300.00 price target.
- OPI beat expectations due to cost controls, and the capital allocation policy remained favorable with buybacks and special dividends.
- As anticipated, the top line was mixed due to lower activities for games and lockdown impact on Fintech, but offset by strength in advertising.
- The gaming business in China remained challenging due to a lack of new significant titles and a slower approval process.
- The company invests in international games, mini-programs for e-commerce, and business services to align with policies.
- He maintained his FY24 EBITDA estimates of RMB 224 billion.
- Price Action: TCEHY shares traded higher by 5.51% at $39.06 on the last check Thursday.
- Photo by Chris Yunker via Flickr
“Elon Musk Says Tesla Will Spend ‘Well Over’ $500M On New EV Chargers” – MorningStar
https://www.morningstar.com/news/marketwatch/20240510253/elon-musk-says-tesla-will-spend-well-over-500-million-on-new-ev-chargers Announcement comes after reports that Tesla laid off about 500 employees as the
