Tencent’s Earnings Beat Sparks Price Targets Showing 16% Gain

(Bloomberg) — Chinese social media giant Tencent Holdings Ltd.’s (0700.HK, TCEHY) strong earnings beat this week led more than two dozen analysts to lift their price targets for its stock, suggesting room for double-digit percentage gains over the next 12 months.

Tencent’s target price consensus has jumped by more than 5% to HK$688 since it reported quarterly results on Wednesday, according to Bloomberg calculations. That is the second biggest post-earnings jump in its price target over the past five years, beaten only by a March shift fueled by optimism around AI start-up DeepSeek.

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The new consensus price suggests potential gains of almost 16% over the next 12 months, based on the stock’s HK$594.50 price during Friday’s trading session.

At least 16 brokers are now forecasting the company’s shares to rally above its historical high seen in 2021, erasing losses triggered by China’s years-long crackdown on the private sector. They are bullish about the company’s upcoming release of mobile game next Tuesday, seen as a key driver of its second-half gaming revenue.

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Tencent reported a 15% jump in revenue to 184.5 billion yuan ($25.7 billion) in the June quarter, beating analysts’ projections. That was driven by double-digit growth in most major business segments including advertising, which it attributed to AI-driven enhancements.

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