Big moves | Meta Platforms, Alphabet-C's target price raised after earnings! Tencent may welcome a new "golden touch".
Small Mo said that TENCENT recently launched a staged loan product similar to ANT GROUP's "ANT GROUP" called "Fenfu". Although the new product has little impact in the past 1 to 2 years, the launch of the product has increased the visibility in the medium and long term, making the stock price prospects of TENCENT more and more optimistic.
JPMorgan: Upgrade TENCENT to "Overweight" with a target price of HKD 430
If calculated based on the latest closing price of HKD 344.4, this price implies a 25% upside potential!
TENCENT recently launched a staged loan product similar to ANT GROUP's "Ant Group" called "Fenfu". The report believes that although the new product has little impact in the next 1 to 2 years, the launch of the product will increase the visibility in the medium and long term, making the stock price prospects of TENCENT more optimistic.
The report pointed out that as a single financial technology product, the potential profit impact of "Fenfu" on TENCENT at the group level is relatively limited. It is estimated that when the loan balance of "Fenfu" reaches RMB 1 trillion in 1-2 years, it will contribute about 9% of the group's operating profit. However, it is still expected that the launch of "Fenfu" will be a positive catalyst for TENCENT, and more financial technology products are expected to be launched in the future.
In addition, assuming a compound annual growth rate of 20% for the financial technology business and a 10 percentage point increase in profit margin, the financial technology business will surpass local online entertainment businesses including games in 5 years and become the largest profit contributor to TENCENT.
Credit Suisse: Maintain "Outperform" rating for PING AN, and raise the target price from HKD 67 to HKD 71, up 6%
If calculated based on the latest closing price of HKD 56.7, this price implies a 25% upside potential!
The bank stated that PING AN's new business value in the first quarter increased by 9% year-on-year, slightly higher than expected. Among them, the agent channel turned positive year-on-year, and the bank insurance channel soared 1.3 times; the first-year premium used to calculate new business value increased by 28% year-on-year. Due to changes in channels and product combinations, as well as changes in actuarial assumptions at the end of last year, the new business value rate calculated based on the first-year premium fell by 3.7 percentage points to 20.9%.
Compared with similar companies, the new business value in the first quarter increased by 21.1% year-on-year. The bank expects that PING AN's new business value growth will accelerate in April, and the earnings per share forecast for the company's fiscal year 2023 to 2025 will be raised by 6%.
Citigroup: Maintain "Buy" rating for Meta, and raise the target price from USD 260 to USD 315, up 21%
If calculated based on the latest closing price of USD 238.56, this price implies a 32% upside potential!
The bank stated that with the increase in participation, the increase in spending attracted by updated advertising products, and a more streamlined organization, it believes that Meta's momentum in the first quarter may continue, and it is still the first choice for online advertising. The bank believes that while Meta is investing in generating and basic AI tools, it is also providing better results.
Deutsche Bank: Maintains "Buy" rating on Google, raises target price by 4% to $125 from $120
At the latest closing price of $107.59, this price implies a 16% upside!
The bank stated that Google reported a robust first-quarter performance, with the biggest surprise being the stable growth trend of its search and YouTube businesses, which exceeded Wall Street's general expectations.