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Tencent Holdings Ltd. shares extended gains in afternoon trade on Thursday, as analysts welcomed the company’s fourth-quarter revenue turnaround and raised target prices on the stock.
Shares of the Chinese technology giant
700,
rose as much as 7.4%, hitting an intraday high of 372.80 Hong Kong dollars (US$47.50) shortly after the midday trading break.
The rally came after Tencent on Wednesday posted 12% net profit growth for the fourth quarter. Revenue rose 1%, reversing from two quarters of consecutive top-line declines earlier in 2022.
“Tencent exited 2022 on a solid turnaround trend,” Citi analysts led by Alicia Yap said in a post-earnings note. Citi raised its target price on the stock to HK$520 from HK$496 and kept a buy rating on the stock.
Jefferies analysts led by Thomas Chong shared that optimism, raising their target price to HK$460.00 from HK$456.00 with an unchanged buy rating. Meanwhile, US Tiger Securities analyst Bo Pei upgraded the target price to HK$380 from HK$365, while also maintaining a buy rating.
“Overall, Tencent should benefit from the improving macro environment in 2023,” Mr. Pei said in a note.
Write to Yifan Wang at yifan.wang@wsj.com
