Citigroup: Tencent's game revenue in the third quarter is expected to remain steady, raise the company's target price and maintain a buy rating.

Citigroup's report states that Tencent's gaming business revenue is expected to continue to remain stable in the third quarter. Given that Tencent has not announced any major game releases in the third quarter, the company may focus on promoting existing games to drive growth. Citigroup points out that Tencent also has a strong pipeline of 94 mobile games, with more than half already approved by Chinese regulatory authorities. Citigroup has raised its adjusted net profit forecast for Tencent in 2025 and 2026 by 0.3% and 0.2% respectively, but lowered its forecast for 2027 by 0.2%. Previously, Citigroup adjusted its revenue forecast for advertising and cloud business, but maintained its estimates for gaming and value-added services. Citigroup raised Tencent's target price from HK$695.00 to HK$699.00 while maintaining a buy rating.