dragon&tiger| Morgan Stanley: Raise Tencent's target price to HK$450 as the preferred stock in BATM

Morgan Stanley published a research report stating that Tencent announced its first-quarter results this year, which disclosed for the first time the performance of its domestic and overseas game businesses, with year-on-year growth of 3% and 34% respectively, demonstrating strong development potential and looking forward to game performance in the next few quarters. Good, it is predicted that Tencent's game business revenue will increase by 7% year-on-year in the second quarter. Advertising revenue increased by 26% year-on-year during the period, significantly exceeding expectations. Morgan Stanley believes that it is mainly due to the Lunar New Year.dragon&tigerDriven by the favorable seasonal conditions of, it is expected that with the further application of generative artificial intelligence, the advertising click-through rate will further improve in the second quarter, and revenue is expected to increase by 19% year-on-yeardragon&tiger.5%。

Based on its optimism that Tencent will achieve solid growth in the second quarter, Morgan Stanley maintains its "overweight" rating and lists it as the preferred stock in BATM. Its target price is raised to HK$450, and it is expected that continued repurchase will provide support for the share price.