0313 GMT - Tencent's shares are still very undervalued, Morningstar analyst Ivan Su says in a research note. Tencent's shares have gained some momentum recently after Meta's artificial-intelligence agent app Muse gained traction, the analyst says. Investors have viewed Muse's popularity as a positive sign for Tencent, which is testing a similar AI agent, Xiaowei, within WeChat, Su says. He thinks Xiaowei has a structural advantage over Muse as it sits within WeChat, China's most-used app, while Muse is a standalone download. Still, Tencent's shares are at roughly a 40% discount to Morningstar's 780 Hong Kong dollar target price. "A successful AI agent launch, likely later this year, could be a catalyst for the shares," he adds. Shares are last at HK$442.00.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.