--- title: "UBS: Maintains Tencent target price at HKD 780 and reiterates \"Buy\" rating" type: "News" locale: "en" url: "https://longbridge.com/en/news/292269080.md" description: "UBS released a research report, maintaining a target price of HKD 780 for Tencent and a \"Buy\" rating. It is expected that Tencent's revenue will grow by 9% year-on-year in the second quarter of 2026, with adjusted net profit increasing by 4% to RMB 66 billion. By business segment, domestic game revenue growth is expected to rebound to 10%, while international growth slows to 8%; advertising is expected to increase by 18%; and fintech growth slightly slows to 8%. Gross margin is expected to increase by 11% year-on-year to 57.9%" datetime: "2026-07-10T03:52:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292269080.md) - [en](https://longbridge.com/en/news/292269080.md) - [zh-HK](https://longbridge.com/zh-HK/news/292269080.md) --- # UBS: Maintains Tencent target price at HKD 780 and reiterates "Buy" rating According to the Zhitong Finance APP, UBS has released a research report maintaining a target price of HKD 780 for Tencent (00700) and reaffirming its "Buy" rating. The bank expects Tencent's revenue to grow by 9% year-on-year in the second quarter of 2026, with adjusted net profit increasing by 4% to RMB 66 billion. By business segment: 1) Gaming: i) Domestic market: The bank expects revenue growth in the second quarter to rebound to 10% (from 6% in the first quarter), mainly due to the strong performance of evergreen games and incremental contributions from newly launched games. ii) International market: Given the merger of Supercell and Kuro, the bank expects revenue growth in the international market to slow to 8% (from 13% in the first quarter). 2) Advertising: Year-on-year growth is expected to be 18% (from 20% in the first quarter), although the growth rate has slowed due to a high base, advertising technology upgrades, video accounts (increasing traffic and ad load), and higher effective cost per thousand impressions (eCPM) ad formats will continue to support growth. 3) Financial Technology (FBS): Growth is expected to slow slightly to 8% (from 9% in the first quarter), mainly affected by the slowdown in payment growth due to weak macroeconomic conditions. With improvements in chip supply, growth in cloud computing business should accelerate and is expected to further increase in the second half of the year. The bank expects a year-on-year increase in gross margin of 11% (gross margin at 57.9%), mainly due to the optimization of the business structure towards higher-margin businesses; adjusted operating revenue is expected to grow by 7% year-on-year to RMB 74 billion, mainly impacted by increased AI operating expenses and depreciation ### Related Stocks - [TCEHY.US](https://longbridge.com/en/quote/TCEHY.US.md) - [TCTZF.US](https://longbridge.com/en/quote/TCTZF.US.md) - [00700.HK](https://longbridge.com/en/quote/00700.HK.md) - [UBS.US](https://longbridge.com/en/quote/UBS.US.md) - [80700.HK](https://longbridge.com/en/quote/80700.HK.md) - [HTCD.SG](https://longbridge.com/en/quote/HTCD.SG.md) ## Related News & Research - [Tencent Maintained at Buy as Analyst Trims Target to HK$735 but Cites AI-Driven Growth and Attractive Valuation](https://longbridge.com/en/news/292495790.md) - [Tencent Is Eyeing a Major Investment in AI Startup Manus. What That Means for TCEHY Stock Here.](https://longbridge.com/en/news/292635086.md) - [This Chicago spirit quadrupled sales with ads likening it to fermented back sweat](https://longbridge.com/en/news/292605066.md) - [AppLovin stock slides after analyst note on e-commerce ads rollout](https://longbridge.com/en/news/292525415.md) - [Meta stock: A cash-gushing ad giant with a powerful moat but limited diversification](https://longbridge.com/en/news/292419814.md)