Tencent Holdings , the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Saiyi He from CMB International Securities maintained a Buy rating on the stock and has a HK$705.00 price target.
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Saiyi He has given his Buy rating due to a combination of factors that highlight Tencent Holdings’ robust financial performance and strategic growth initiatives. The company’s second-quarter results for 2025 showed a significant increase in both total revenue and non-IFRS operating income, surpassing market expectations. This growth was primarily driven by the strong performance of its gaming and marketing segments, which saw year-over-year increases of 22% and 20%, respectively. The expansion in gross profit margin further underscores the quality of Tencent’s growth.
Saiyi He also notes the promising outlook for Tencent’s marketing business, bolstered by advancements in artificial intelligence that enhance ad conversion rates and return on investments. Additionally, the fintech and business services segment experienced accelerated revenue growth, supported by a favorable revenue mix shift and improvements in AI cloud and e-commerce services. The company’s commitment to investing in AI infrastructure and marketing is expected to continue driving operating leverage and margin expansion, reinforcing the positive long-term prospects for Tencent Holdings.
In another report released yesterday, CLSA also maintained a Buy rating on the stock with a HK$740.00 price target.