Citi cut its target price on Tencent to HKD 758 from HKD 763 and kept a Buy rating. For Q2 Citi forecasts revenue +9.3% YoY to CNY 201.7 bln and adjusted net profit +5.1% YoY to CNY 66.25 bln, citing caution over AI-related spending and profit drag;

2026-07-08

Citi cut its target price on Tencent to HKD 758 from HKD 763 and kept a Buy rating. For Q2 Citi forecasts revenue +9.3% YoY to CNY 201.7 bln and adjusted net profit +5.1% YoY to CNY 66.25 bln, citing caution over AI-related spending and profit drag; estimates are below consensus. expect Citis H2 focus on agent-style AI trials within WeChat, mini-program integration with Hy3, next-generation/upgrades to the Hy model, and capex. Citi says Tencent will likely prioritize share buybacks, boost AI investment and use AI to reinforce core-business growth.

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