Morgan Stanley maintains an "overweight" rating on TENCENT (00700) with a target price of HK$570.

Morgan Stanley released a research report stating that it is expected that TENCENT (00700) will increase its fourth quarter revenue and operating profit by 8% and 19% respectively. It is listed as the industry's top pick and maintains a target price of HK$570 and a "hold" rating. The bank believes that the resumption of buybacks after performance could provide support for the stock price. The bank predicts that Tencent's gaming business will accelerate in the fourth quarter, with a 15% year-on-year increase, while advertising growth in the fourth quarter will slow to 14% due to a lack of one-time driving factors. Financial technology and enterprise services (FBS) growth will remain weak, with a 2% year-on-year increase compared to the third quarter. Non-GAAP operating profit in the fourth quarter will remain steady, and gross profit expansion will continue.