Update shared on16 Aug 2025
Fair value Increased 6.25%Upward revisions to both consensus revenue growth forecasts and future P/E multiples reflect increased optimism about Tencent Holdings’ earnings potential, resulting in a higher analyst price target from HK$639.55 to HK$679.51.
What's in the News
- Tencent is among a dozen parties shortlisted by Starbucks for a potential investment in its China business, with bidders including JD.com and major private equity firms (Bloomberg, 2025-08-01).
- Sony has filed a lawsuit in California against Tencent, alleging that its game "Light of Motiram" is a copycat of Sony’s "Horizon" series, citing copyright and trademark infringement (Reuters, 2025-07-30).
- Tencent announced the appointment of Virgilio Torres as Chief Financial Officer effective June 30, 2025, bringing experience in M&A and financial strategy (Key Developments, 2025-06-30).
- The company is reportedly exploring a potential acquisition of NEXON Co., Ltd., holding discussions with NEXON’s founding family, although deal status and structure remain uncertain (Key Developments, 2025-06-12).
- Tencent commenced a share buyback program from May 19, 2025, authorized to repurchase up to 10% of issued capital, aimed at enhancing net asset value and earnings per share (Key Developments, 2025-05-19).
Valuation Changes
Summary of Valuation Changes for Tencent Holdings
- The Consensus Analyst Price Target has risen from HK$639.55 to HK$679.51.
- The Consensus Revenue Growth forecasts for Tencent Holdings has risen from 9.7% per annum to 10.5% per annum.
- The Future P/E for Tencent Holdings has risen from 23.24x to 24.94x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.