Morgan Stanley says Hello Group turnaround limited, downgrades to Underweight

Morgan Stanley analyst Alex Poon downgraded Hello Group to Underweight from Equal Weight with a price target of $6, down from $7. Amid headwinds for both live streaming and VAS, the firm expects Hello’s operating profit to drop 25% year-over-year in 2024 and sees “limited” turnaround potential, the analyst tells investors.