Investment bank Jefferies maintains a Buy rating for Tencent Holdings and slightly cut its stock price target to HK$491 from HK$500, according to a note on Thursday.
The bank expects the tech giant’s second-quarter revenue to drop by 4% from a year earlier to 132.7 billion yuan.
In breakdown, Tencent’s mobile game revenue will likely decline by about 3.5% on year in the quarter to 39.4 billion yuan; online advertising business revenue to plunge by 29%; fintech and enterprises service revenue to increase by 2% to 42.7 billion yuan, according to the note.
Tencent’s adjusted net profit is expected to dive 27% on year in the second quarter to 24.7 billion yuan, it said.