Hello Group price target lowered to $16 from $22 at Benchmark

Benchmark lowered the firm’s price target on Hello Group to $16 from $22 and keeps a Buy rating on the shares. FY24 guidance was softer than expected and the muted growth outlook is primarily attributable to monetization set-back in an attempt to weed out low-quality, higher-risk revenues, coupled with a likely conservative attitude toward “a fluid consumption environment,” the analyst tells investors. While the firm lowered its FY24 estimates and says the guidance is “highly disappointing fundamentally,” investors “should not lose sight of the big picture in terms of risk/reward on the stock,” the analyst added.