Why Tencent Holdings Stock Trounced the Market Today
A new analyst note catalyzed buying in the American Depositary Receipts (ADRs) of Tencent Holdings (OTC: TCEHY) on Wednesday. That security enjoyed a very pleasant price pop of more than 4% on the day following the note's publication, a rise that easily beat the S 500 index's 0.7% advance.
What helped was that the analyst in question works at a very high-profile bank. He's Alex Yao of JPMorgan Chase (NYSE: JPM), and he reiterated his overweight (read: buy) recommendation on Tencent. His price target for the company's Hong Kong-listed shares is 440 Hong Kong dollars, which converts to $56.21. That's well above the current price of the ADRs, which stands at $44.81 apiece.
Tencent, a sprawling tech company based in mainland China, is the world's largest video game publisher. It's also the company behind the immensely popular WeChat online ecosystem that marries a host of tech functionalities to fintech services. Finally, it controls the near-eponymous Tencent Music and is very active in the cloud computing sphere.
Source Fool.com
Tencent Holdings Ltd. Stock
The community is currently still undecided about Tencent Holdings Ltd. with 2 Buy predictions and 0 Sell predictions.
On the other hand, the target price of 40 € is below the current price of 44.2 € for Tencent Holdings Ltd., so the potential is actually -9.5%.
