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Tencent Music upgraded at Morgan Stanley with sustainable growth ahead
The Fly

Tencent Music upgraded at Morgan Stanley with sustainable growth ahead

Morgan Stanley analyst Alex Poon upgraded Tencent Music to Overweight from Equal Weight with a price target of $8.50, up from $4.50. Since 2020, Tencent Music’s profit has been negatively impacted by the live streaming industry downcycle, while its music segment remained loss making. However, Tencent’s music segment saw its first operating profit breakeven in Q3 and the live streaming business decline "looks to be stabilizing," Poon tells investors. He projects incremental profit from the music segment to surpass the social segment’s decline from 2023 onwards, leading to a sustainable EPS compound annual growth rate of over 10% from 2022-24, the analyst added.

Published first on TheFly

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