“Although Tencent is still facing the trough regulation environment, including cybersecurity, under-aged user protection and the antitrust regulations storm, we believe Tencent’s overseas games, unique position in the metaverse, WeChat+QQ ecosystem and SaaS+Cloud still have strong product advantages,” Pan and Oong write.
UOB Kay Hian analysts Julia Pan and Oong Chun Sung have maintained their “buy” call and increased their target price on Tencent Holdings to HK$588 ($101.30), up from their previous figure of HK$535.
In a Sept 9 report, the analysts note that Tencent has rebounded almost 25% since its low in August 2021. According to them, this means that the impact of the regulatory changes has been priced in at the current stage.
