Tencent Holdings Limited : The underlying trend is in force again

02/04/2020 | 10:25am EST

David Meurisse

long trade Target price hit

Entry price : 382HKD | Target : 408.7HKD | Stop-loss : 367HKD | Potential : 6.99%

Tencent Holdings Limited shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term. Investors have an opportunity to buy the stock and target the HKD 408.7.

Summary

• The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

Strengths

• Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
• The group's activity appears highly profitable thanks to its outperforming net margins.
• Thanks to a sound financial situation, the firm has significant leeway for investment.
• Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
• Within the weekly time frame the stock shows a bullish technical configuration above the support level at 355 HKD

Weaknesses

• Based on current prices, the company has particularly high valuation levels.
• With an expected P/E ratio at 38.52 and 33.82 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
• The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
• For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

© MarketScreener.com 2020

	Stocks mentioned in the article	Change	Last		1st jan.
	AMP LIMITED	-0.95%	1.565		0.32%
	AT HOME GROUP INC.	-2.95%	22.73		47.02%
	LETS HOLDINGS GROUP CO., LTD.	1.58%	7.72		-0.77%
	LOOK HOLDINGS INCORPORATED	-1.07%	921		-3.76%
	TENCENT HOLDINGS LIMITED	2.46%	645		14.36%

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