G Sachs Lifts TENCENT TP to $434; Online Game Biz Robust during CNY
$Tencent(TCEHY.US$ 's online game business charted robust performance in Mainland China during the Chinese New Year holidays, driven by the 31% and 16% YoY revenue growth in legacy titles including "Honour of Kings" and "Peace Keeper Elite", which was helped by a low base, better demand and additional monetization through content updates and promotional activities, reported Goldman Sachs.
The broker raised the FY2023-24E game revenue growth for TENCENT by 0.8% and 2.2%, respectively, implying a YoY growth of 9% for both years. The growth of the international market was expected to reach 16% and 17% in 2023-24, respectively, on the back of the group's deep pipeline of over 40 international game titles and continuous overseas expansion via M&A and minority investments.
Taking into account the revised earnings, Goldman Sachs lifted the target price of TENCENT from $422 to $434, with its rating kept at Buy.
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