Bank of America Securities: Tencent's business is steadily growing, continuously focusing on AI development, reiterating a "Buy" rating

Bank of America Securities released a research report stating that it has lowered its adjusted net profit forecast for Tencent Holdings in 2025 by 2%, while the forecast for 2026 remains largely unchanged. The firm maintains a target price of HKD 631 based on the discounted cash flow method and reiterates a "Buy" rating, primarily considering its high-quality fundamentals, the long-term growth potential of under-monetized assets, and the rising space in the artificial intelligence sector. With a solid market leadership position and a moderate competitive business environment, the firm believes Tencent stands out among large internet companies in China, expecting Tencent to steadily develop its business this year while continuing to focus on the development of artificial intelligence. The firm maintains its forecast for Tencent's revenue to grow by 11% year-on-year in the second quarter of this year and an adjusted operating profit to grow by 14% year-on-year