Golden data on the 14th of August, Morgan Stanley published a report, downgrading profit forecasts per share for Tencent Music (TME.US) from 2024 to 2026, with a target price reduced from $19 to $15. Assuming a net addition of 2 million users per quarter from the second half of the year, down from over 3 million users, but partially offset by the increase in average revenue per paying user and improved profit margin. The bank maintains its overweight rating, expecting a 20% compound annual growth rate in earnings per share from 2024 to 2026, with macro environment and competitive risks lower than most other vertical industries. The big mo points out that the adjustment in Tencent Music's share price after the performance announcement is mainly due to the slowing down of the quarterly music net addition target of 2 million users from the second half of the year; but the mid-term target of 150 million users by 2028 and average monthly revenue per paying user of 15 yuan RMB remain unchanged.
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Morgan Stanley has lowered the target price of Tencent Music to $15 and reduced its earnings per share forecast.
Golden data on the 14th of August, Morgan Stanley published a report, downgrading profit forecasts per share for Tencent Music (TME.US) from 2024 to 2026, with a target price reduced from $19 to $15. Assuming a net addition of 2 million users per quarter from the second half of the year, down from over 3 million users, but partially offset by the increase in average revenue per paying user and improved profit margin. The bank maintains its overweight rating, expecting a 20% compound annual growth rate in earnings per share from 2024 to 2026, with macro environment and competitive risks lower than most other vertical industries. The big mo points out that the adjustment in Tencent Music's share price after the performance announcement is mainly due to the slowing down of the quarterly music net addition target of 2 million users from the second half of the year; but the mid-term target of 150 million users by 2028 and average monthly revenue per paying user of 15 yuan RMB remain unchanged.