Big Moves | Apple's Target Price Gets Another Boost! Why Does TENCENT Still Have 45% Upside Potential?

TF Securities: Maintains TENCENT "Buy" rating, target price of HKD 476

If calculated at the latest closing price of HKD 328.4, this price implies a 45% upside potential!

The bank believes that the company's social traffic volume and the stable competition pattern of the core business layer, as well as the significant results of cost reduction and efficiency increase, provide a solid foundation for high growth in the medium term. The elasticity of game supply is relatively sufficient, and heavyweight new works in the future are worth looking forward to; Video Number provides strong support for WeChat traffic and advertising growth, and live e-commerce has potential; Financial technology and enterprise services are expected to gradually recover growth momentum. In the medium and long term, AI technology may become an important growth multiplier for TENCENT.

Daiwa: Reiterates "Buy" rating for Beike, target price of HKD 63

If calculated at the latest closing price of HKD 39.85, this price implies a 58% upside potential!

The bank expects that Beike's revenue will increase in 2023, mainly due to strong sales of existing homes in the first quarter of 2023, coupled with existing home income in 2023 still lower than that in 2021.

The bank predicts the first quarter of the group and expects that the total transaction value (GTV) of existing homes in the first quarter will increase by 62% year-on-year, and the GTV of new homes will increase by 23%. Although the growth momentum of new home sales in April is weak, if the group decides to cooperate with more developers, the bank believes that the market's consensus on new home income has upward potential.

The sales of second-hand houses in major cities in April were strong, and it is expected that the momentum of second-hand house sales will continue in May and June due to delivery issues of some developers. It is predicted that the non-GAAP net profit margin in the first quarter will increase by 11 percentage points year-on-year to 11%, and the full year will increase by 3 percentage points to 7.7%. The non-GAAP net profit is RMB 2.059 billion, a year-on-year increase of 33%.

Deutsche Bank: Maintains "Buy" rating for Apple, raises target price from USD 170 to USD 180, up 6%

If calculated at the latest closing price of USD 173.5, this price implies a 4% upside potential!

The bank stated that due to strong iPhone sales, Apple's performance in the second quarter was better than expected, which far outweighed the weakness expected in other areas. The bank acknowledges that there is uncertainty in consumer spending that can be freely disposed of in the short term, but also believes that investors prefer high-quality stocks in the current macro environment. The bank believes that at the current level, Apple's risk-return profile is still attractive.

Stifel: Upgrades Snowflake from "Hold" to "Buy"

The bank stated that comments from companies such as Microsoft may indicate that unfavorable factors in optimization are beginning to slow down, and the comparison results in the second half of the year may be easier, and revenue growth may stabilize at around 30%. In addition, Snowflake's cost discipline should help improve profitability and "meaningfully increase" free cash flow. This line believes that Snowflake is likely to be a "net beneficiary" of the growth of the generative artificial intelligence market because its cloud platform has data for training large language models.

"We believe this is a very attractive opportunity for Snowflake because Snowflake can avoid paying for the computing costs associated with developing models while benefiting from customer training models using data in the Snowflake Data Cloud."

In addition, Snowflake's existing customers purchased shorter-term contracts in the fourth quarter, and while this trend may continue, it will not affect consumer behavior and therefore will not affect revenue.