Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

Shinsei Corporate Management Analysts Says Tencent has Room to Grow

Shinsei Corporate Management Analysts Says Tencent has Room to Grow

Shinsei Corporate Management Analysts have said that the Shenzhen-based Tencent could head to new highs in coming months, possibly overtaking records set in late January.

So far this year, its shares have shed $70 billion in value, a stronger bear run than the rest of the technology industry, as markets priced in the costs of the Tencent’s massive spending spree.

“We’ve yet to eclipse the high in the owner of WeChat, so I take current drop, which comes amid apparent profit-taking among heavyweights, as a short-term positive. We should be able to move up and break through the recent highs,” said Muranaka Ryushi, Head of Research at Shinsei Corporate Management.

Despite the challenges, the Chinese e-commerce company is still a consumer staple and the business of making it is largely recession-proof. Tencent is particularly attractive because of its bargain valuation and because its recent metrics were also led by the company’s forays into ‎multiple markets.

The majority of analysts on Wall Street have a buy rating on Tencent and an average HK$455 price target, according to according to the average of 11 estimates compiled by Bloomberg. That target implies 6 percent upside to Tuesday’s close.

There are some Tencent bears, though, including Citigroup Inc. and Deutsche Bank AG, which have lowered their sales or earnings expectations over the near and long term. The company’s fundamentals give some brokers a reason to feel bearish in 2018.

Specifically, recent reports suggest that rising costs and investments will hurt profitability at Asia’s biggest listed company, which has a market capitalization of roughly $560 billion.

Analysts at Shinsei Corporate Management are also concerned that Tencent could sacrifice margins in the next years to spur future growth, yet it won’t able to generate enough cash from its new ventures to offset a decline in its established segments.

“One thing I would caution though, is Tencent tends to be a short-term proxy for weak performance in PC games coupled with weaker ad seasonality,” says Michael Brooks, Head of Sales & Trading at Shinsei Corporate Management.

The Shenzhen-based firm, which is one of world’s most valuable ‎technology giants, runs China’s most popular social-networking platforms, with more one billion million ‎users, mostly in mainland.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post