Tencent price target raised to HK$330 from HK$300 at Mizuho

Mizuho analyst James Lee raised the firm’s price target on Tencent to HK$330 from HK$300 and keeps a Neutral rating on the shares. In 2023, the analyst expects macro trends to remain as key drivers for U.S. and China Internet stocks, "with the divergence between the two expected to widen". In the U.S., high inflation and rising interest rates will likely lead to a deceleration in GDP growth, Lee tells investors in a research note. In China, reopening of the economy and a more accommodative monetary policy should lead to higher GDP growth, contends the analyst. He recommends investors to "play defense" in U.S. internet, choosing companies with the lowest risk of downward revisions and aggressive cost-cutting plans. HIs top U.S. picks are Meta (META) and Uber Technologies (UBER). For China internet, Lee recommends to "play offense," selecting companies that are positioned to gain share and are at the forefront of the recovery curve. His top picks are JD.com (JD), Trip.com (TCOM), and Baidu (BIDU).