---
title: "Goldman Sachs raised its target price for Tencent to 770 yuan, indicating that its valuation still has a discount compared to global peers"
description: "Goldman Sachs raised Tencent's target price to 770 yuan, believing that its valuation still has a discount compared to global peers. Despite facing U.S. tariffs and geopolitical risks, Tencent's stock"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/260826314.md"
published_at: "2025-10-13T03:29:22.000Z"
---

# Goldman Sachs raised its target price for Tencent to 770 yuan, indicating that its valuation still has a discount compared to global peers

> Goldman Sachs raised Tencent's target price to 770 yuan, believing that its valuation still has a discount compared to global peers. Despite facing U.S. tariffs and geopolitical risks, Tencent's stock price has risen 56% this year. Goldman Sachs predicts that Tencent's revenue and earnings per share will grow by 13% and 18% respectively in the third quarter, and has raised its capital expenditure forecast to 350 billion yuan. Goldman Sachs maintains a "Buy" rating on Tencent, setting bull and bear market target prices at 846 yuan and 541 yuan respectively

Goldman Sachs released a report stating that Tencent (00700.HK) has seen its stock price rise by 56% this year, compared to the Hang Seng Tech Index's 44%. Despite renewed concerns among investors regarding U.S. tariffs and geopolitical risks, they maintain a positive outlook on Tencent. Although the stock has been revalued to a projected non-International Financial Reporting Standards price-to-earnings ratio of 19 times for 2026, its valuation remains relatively discounted compared to global peers, and it possesses relatively low monetizable assets, with multiple AI-driven monetization levers and a stable shareholder return policy.

The firm expects the market to focus on AI applications and capital expenditure outlook, as well as upgrades in foundational and multimodal AI model capabilities in Tencent's third-quarter results. Goldman Sachs forecasts Tencent's third-quarter revenue and earnings per share to increase by 13% and 18% year-on-year, driven by high-margin revenue sources and operational leverage. Goldman Sachs has raised its capital expenditure forecast for Tencent from this year to 2027 to RMB 350 billion and has also increased its cloud revenue growth forecast.

Goldman Sachs believes that Tencent's AI empowers all its business lines, benefiting from its unique WeChat ecosystem and global gaming assets. The firm maintains a "Buy" rating on Tencent, raising the target price for the base scenario from RMB 701 to RMB 770, based on a comprehensive valuation approach. The target price for Tencent's "bull market" scenario is RMB 846, while the target price for its "bear market" scenario is RMB 541

### Related Stocks

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- [00700.HK - TENCENT](https://longbridge.com/en/quote/00700.HK.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.