Tencent Music price target lowered to $15 from $18 at BofA

BofA analyst Lei Zhang lowered the firm’s price target on Tencent Music to $15 from $18 and keeps a Buy rating on the shares. Tencent Music delivered largely inline results, while the company indicated it is the time to focus more on average revenue per user growth from the second half of 2024 given the company believes quality growth is more sustainable and it has the ability to offer premium services to engaged users and user retention of long-tail user with pure low-price strategy might not as good as expected, and it doesn’t want to dilute ARPU, the analyst tells investors in a research note.