Hello Group double downgraded to Underperform at BofA

As previously reported, BofA analyst Lei Zhang double downgraded Hello Group (MOMO) to Underperform from Buy with a price target of $6.50, down from $8.50. The firm is more conservative on Momo’s core business, given that live streaming remains under pressure due to the weak macro and a new round of restructuring of social app Tantan adds to uncertainty about business growth, the analyst tells investors. In addition, investors have higher dividend expectations, which the company may miss due to expected earnings decline and forex control by the government, the analyst says.