Tencent gets Citi Buy reiteration at HKD 763 on AI agent progress

Citi reiterated its Buy rating on Tencent Holdings Ltd. at HKD 763, citing smooth integration of WeChat Mini Programs into the AI ecosystem as a sign that AI agent development has entered its final stage.

"The testing, together with continuous feedback from the Hunyuan Hy3 model, will provide valuable data for Tencent's next-generation model iteration," Citi said in a research report dated June 8, adding that a full rollout of WeChat AI agents is expected in the near term.

WeChat announced on June 8 that it will integrate Mini Programs into its AI ecosystem. The initial testing phase includes core partners such as Meituan, TongchengTravel and Trip.com, allowing users to directly access local lifestyle services including food delivery through WeChat AI agents. Tuhu has also completed integration as a first-batch internal testing partner, covering vehicle fault diagnostics, store recommendations and maintenance order placement.

Citi's price target is based on a sum-of-the-parts valuation method, implying 23 times 2026 forecast earnings and about 21.7 times 2027 forecast earnings. The bank maintained its rating and target without changes, suggesting the AI integration news aligns with its existing thesis on Tencent's AI monetization potential.

Once fully integrated, Mini Programs will become eligible for recommendation and usage within WeChat's AI framework. The move positions Tencent to monetize its user base through AI-driven commerce, with Meituan, TongchengTravel and Trip.com among the first beneficiaries. Haitong International also reiterated its Outperform rating on Tencent, saying the AI agent testing should support the share price rally.

The HKD 763 target price implies upside from Tencent's current trading level, though Citi did not disclose the exact implied return in its report. The bank's SOTP valuation assigns a premium multiple to Tencent's core gaming, advertising and fintech businesses, reflecting expected growth from AI monetization within the WeChat ecosystem.

For holders, the reiteration reinforces confidence in Tencent's AI strategy execution. Investors will watch for the official public beta launch of WeChat AI agents, which BofA Securities expects could arrive as early as the fourth quarter of 2026, serving as the next major catalyst for the stock.

This article is for informational purposes only and does not constitute investment advice.