---
title: "Bank of America Securities: Reiterates \"Buy\" rating on Tencent Holdings with a target price of HKD 780"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280125153.md"
description: "Bank of America Securities released a research report stating that it reaffirms Tencent Holdings' \"Buy\" rating. Considering the increase in Tencent's AI investments, it has lowered the non-IFRS net profit forecasts for 2026 and 2027 by 4% and 3%, respectively, while maintaining the target price at HKD 780. The report mentions that Tencent's fourth-quarter performance reduces the risk of lowering the full-year earnings forecast and anticipates a clear path for valuation reassessment, including the launch of Mix Yuan 3.0 and more large language model upgrades within the next six months, accelerated capital expenditures and cloud revenue in the next 6 to 12 months, and the launch of WeChat smart agents in the next 9 to 18 months. The firm indicated that Tencent's management revealed that AI-related investments in 2026 will exceed RMB 36 billion, compared to RMB 18 billion in 2025, and increasing AI investments may pressure the non-GAAP operating profit margin in 2026 by single digits, but the impact is manageable"
datetime: "2026-03-23T08:32:20.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280125153.md)
  - [en](https://longbridge.com/en/news/280125153.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280125153.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/280125153.md) | [繁體中文](https://longbridge.com/zh-HK/news/280125153.md)


# Bank of America Securities: Reiterates "Buy" rating on Tencent Holdings with a target price of HKD 780

According to the Zhitong Finance APP, Bank of America Securities has released a research report reiterating its "Buy" rating on Tencent Holdings (00700). Considering the increase in Tencent's AI investments, it has lowered its non-IFRS net profit forecasts for 2026 and 2027 by 4% and 3%, respectively, while maintaining a target price of HKD 780.

The report states that Tencent's fourth-quarter performance reduces the risk of lowering full-year earnings forecasts and anticipates a clear path for valuation reassessment, including the launch of Mix Yuan 3.0 and more large language model upgrades within the next six months, accelerated capital expenditures and cloud revenue in the next 6 to 12 months, and the introduction of WeChat intelligent agents in the next 9 to 18 months.

The firm indicated that Tencent's management revealed that AI-related investments will exceed RMB 36 billion in 2026, compared to RMB 18 billion in 2025. Increasing AI investments may pressure the non-GAAP operating profit margin in 2026 by single digits, but the impact is manageable

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