0441 GMT - Tencent's gaming business likely accelerated growth in 4Q, mainly due to deferred revenue from previously strong grossing, Morgan Stanley analysts say in a research note. While the analysts observe that grossing momentum in evergreen games slowed in 4Q, new games such as Delta Force and Path of Exile 2 delivered encouraging performance. Meanwhile, its double-digit ad revenue growth is expected to remain intact, driven by AI ad tech upgrades and monetization of its video accounts, they add. Tencent's fintech business has likely bottomed out, supported by slightly improving payment trends on-month, they add. The investment bank maintains an overweight rating on Tencent while lowering its target price to HK$550.00 from HK$570.00, citing foreign exchange adjustments. Shares are last at HK$380.60. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
January 14, 2025 23:41 ET (04:41 GMT)
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