Morgan Stanley Boosts Tencent Target Price to $480

Morgan Stanley has reaffirmed its Overweight rating for Tencent, raising the target price from $450 to $480, implying a 2025 PE ratio of 16x.

Top Pick: The firm considers Tencent the best risk-reward opportunity among Chinese tech stocks, particularly benefiting from a recovery in the gaming industry.

Investment Upside: Morgan Stanley notes potential gains from Tencent's $79 billion investment portfolio as China's internet sector rebounds. They favor Tencent over NetEase, viewing its valuation as still attractive.