Chinese multimedia company Tencent (TCEHY) got updated coverage from HSBC analysts today leading up to the release of its Q4 2024 earnings report. The HSBC analysts believe the company’s domestic video game sales for the quarter will experience a 20% growth year-over-year. The analysts cite evergreen titles and the new game Delta Force as the major catalysts behind this increase.
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Expanding to the international stage, HSBC analysts predict video game sales will increase 12% year-over-year in Q4. A leading force behind this increase will likely be Supercell, the development studio of mobile games such as Hay Day, Clash of Clans, Boom Beach, and Clash Royale.
With all of these expectations comes updated coverage of TCEHY stock. The HSBC analysts maintained a Buy rating for Tencent but lowered its price target from HKD570 to HKD540.
What Else to Expect from TCEHY in Q4
On top of its performance estimates, HSBC analysts expect Tencent to announce new shareholder buyback plans. This would follow the company’s shareholder return plans announced this month. Share buybacks are often a morale boost for investors and can help boost stock prices.
It’s also worth keeping in mind what other analysts expect from Tencent in Q4. Wall Street’s estimates for Q4 2024 include earnings per share of 78 cents alongside revenue of $23.25 billion. Tencent has beaten or matched EPS estimates in seven of the previous eight quarters. Its revenue isn’t as reliable with it only beating estimates in five of the last eight quarters.
Is TCEHY Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Tencent is Moderate Buy with only a single rating over the last three months when excluding HSBC’s coverage today. This comes with a price target of $66, representing a potential 33.77% upside for TCEHY shares.
