Internet giant Tencent’s US$107 billion rally has surprised even bullish analysts
- Tencent has jumped 27 per cent since an October low, topping HK$405 on Monday for the first time since 2018
Tencent Holdings’ analysts, who have a history of being too bullish, have now been caught off guard by a rally that is gathering pace in Asia’s biggest stock.
Shares of the Chinese internet giant are closing in on analysts’ consensus target price, something which has not happened in nearly two years. It is the most loved stock in Hong Kong, as none of the 57 analyst ratings tracked by Bloomberg recommend selling the shares. Of the 50 bullish analysts, more than one-third have a 12-month price target that lags its current price.
Tencent has jumped 27 per cent since an October low, adding US$107 billion to shareholder value.
The share price topped HK$405 on Monday for the first time since 2018, the price at which its biggest shareholder sold about US$10 billion worth of shares early that year. It was Hong Kong’s biggest-ever secondary offering at the time.
Tencent rose as much as 1.6 per cent on Tuesday to HK$413 before turning lower with the broader market. Shares fell 1.5 per cent to close just above HK$400.