Morgan Stanley: Tencent's gaming sector may maintain momentum in the third quarter

Zhitong
2024.10.09 09:42

Morgan Stanley analysts stated in a research report that Tencent's game revenue growth in the third quarter may still be strong, while growth in its advertising and financial technology sectors may slow down. They mentioned that game revenue in the third quarter is expected to increase by 12.5% year-on-year, with total revenue growing by approximately 20%, driven by the sustained momentum of "DNF" mobile version and solid performance of other evergreen games. Despite weak consumer spending affecting payment business performance, Tencent is expected to benefit from the recent integration of WeChat Pay with the Alibaba ecosystem according to Microsoft. They maintained a "buy" rating on Tencent and raised their target price from HKD 480 to HKD 570

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