Morgan Stanley: Expects Tencent Holdings' third-quarter revenue to increase by 13% year-on-year, reiterates "Overweight" rating

According to the Zhitong Finance APP, Morgan Stanley released a research report stating that it expects Tencent Holdings (00700) to achieve a 13% year-on-year revenue growth in the third quarter, with non-International Financial Reporting Standards operating profit rising by 18%. The gaming and advertising businesses have potential for upward movement, and their profit margins may continue to expand. The firm reiterated its "Overweight" rating on Tencent, with a target price of HKD 700, continuing to be a preferred stock. Morgan Stanley raised its non-International Financial Reporting Standards operating profit forecast for Tencent for 2025 to 2027 by 1% to 2%, and expects the company's capital expenditure for 2025 to 2027 to be RMB 320 billion. The firm is optimistic about the company's robust growth across all business areas, as well as positive operating leverage, limited competition, capital management, and execution capabilities