Big move to watch | Nvidia's target price for performance has been significantly raised! TENCENT still has 40% upside potential?

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

If calculated at the latest closing price of HKD 332.4, this price implies a 43% upside!

The bank believes that TENCENT's mature game revenue is impressive, and new games are poised to be released, with expected double-digit growth in game revenue for the year. In terms of advertising, revenue growth has recovered well, with the bank expecting a year-on-year increase of 18% for the full year, with greater elasticity in the second quarter due to a low base.

In terms of financial technology and enterprise services, revenue growth has accelerated, gross profit margin continues to improve, and the company expects limited impact from price reductions on some cloud service products. The bank believes that the company's social traffic and core business competition are stable, and the trend of revenue growth and profit recovery is relatively clear, with a solid foundation for medium-term fundamentals to recover with high growth.

CICC: Maintains KUAISHOU-W "Buy" rating, target price raised to HKD 90

If calculated at the latest closing price of HKD 55.55, this price implies a 62% upside!

The bank stated that KUAISHOU-W's live streaming and e-commerce revenue in the first quarter of 2023 exceeded expectations, with adjusted net profit turning positive for the first time. Total revenue was RMB 25.2 billion, a year-on-year increase of 20%. 1) E-commerce GMV increased by 28% year-on-year, with commission rates for distribution by experts and improved return rates after the epidemic driving up commission rates. 2) Online marketing revenue increased by 15%, with strong growth in internal circulation advertising. 3) Monthly average payment and monthly payment users for live streaming increased steadily year-on-year.

The bank expects second-quarter revenue to increase by 25% year-on-year, with 1) E-commerce GMV increasing by 32%, and pan-shelf e-commerce gradually advancing. 2) Online marketing revenue increased by 24% year-on-year, with internal circulation still the main driver, and external circulation advertising showing signs of recovery since April. 3) Benefiting from the introduction of top guild anchors, live streaming may maintain year-on-year growth momentum, with an expected increase of 19%.

JPMorgan: Remains bullish on Macau gaming stocks, with Sands China and Wynn Macau as top picks

Macau gaming stocks' first-quarter performance after the post-epidemic restart was better than expected. The bank remains bullish on the Macau gaming industry, with Sands China and Wynn Macau as top picks, followed by MGM China, Wynn Resorts, and Melco International Development.

The bank predicts that mid-term gaming revenue will fully recover to pre-epidemic levels by the end of this year, two quarters earlier than expected, and that demand for VIP rooms will also surpass pre-epidemic levels. In terms of profit, as future operating expenses are fixed, revenue is expected to continue to accelerate growth to EBITDA. Market share is still expected to be led by MGM, with a market share of over 12% expected next year.

Based on the first-quarter results of the six major Macau gaming stocks, the bank has raised its average full-year EBITDA forecast by 21%, the largest increase in over 10 years. However, the average annual EBITDA growth rate has only been raised by 5%, due to concerns about macroeconomic worries and weaker mainland consumer sentiment. The bank stated that based on the expected market forecast, it continues to believe that the better-than-expected fundamentals of Macau gaming stocks will fully drive investment sentiment and stock prices, further shaking off their overly cheap valuation labels.

Citigroup: Raises Nvidia's Target Price from $305 to $363, a 19% Increase

If calculated based on the latest closing price of $306.88, this price implies an 18% upside potential!