Tencent Music upgraded to Buy from Neutral at Citi

Citi upgraded Tencent Music to Buy from Neutral with a price target of $13, up from $9, following the Q4 beat. Management sounded optimistic on achieving steady music net adds and average revenue per user growth with upbeat expectation on advertising sales and further gross margins expansion, the analyst tells investors in a research note. The firm believes Tencent Music’s “steady and resilient” subscription music business with expanding capabilities of music value chain and ramp-up of long-form audio and diversified use case scenarios across multi-channels support a sustained growth outlook.