UBS released a research report, which raised Tencent’s target price by 18.6% from HK $700 to HK $830. This is estimated at the discounted cash flow rate, which is equivalent to the forecast P / E ratio of 41 times and 34 times respectively this year and next, maintaining the “buy” rating. According to the report, Tencent’s mobile game trend is strong, its advertising and cloud business also see development opportunities, and the management may also consider developing financial technology products. It is believed that the above factors can promote Tencent’s revenue growth of about 25% and EBIT growth of nearly 30% in the last two years.
