Citigroup raised the target price of Tencent Holdings (00700) to HKD 695 and maintained a "buy" rating.

According to the Zhixin Finance APP, Citibank released a research report stating that they have raised the target price of Tencent Holdings (00700) from 670 Hong Kong dollars to 695 Hong Kong dollars by 3.7% and maintained a "buy" investment rating. Citibank points out that Tencent's first quarter gross profit margin/operating profit/net profit increased by 20%/18%/22% respectively compared to the same period last year, mainly due to excellent performance in domestic/international games and online advertising, as well as faster-growing high-profit revenue streams and operating leverage. Despite higher depreciation costs related to artificial intelligence (AI), profit growth still outpaces revenue growth. Management reiterated its focus on enhancing AI investments and expanding internal services relative to external cloud services.