Goldman Sachs released a report on August 14th stating that Tencent Music's Q2 performance met expectations, but its outlook for the second half of this year to 2025 was mixed. Management revised its quarterly net new user guidance from the original 3 million to a range of 1.5 million to 2 million, and hopes to increase the monthly average revenue per paying user (ARPPU) through the higher-priced Super VIP service to maintain the group's revenue target. The bank expects a shift in Tencent Music's growth engines, which may cause concerns for some investors about multiple contractions. However, the bank believes that Tencent Music's risk-return is skewed to the upside, bullish about its long-term growth prospects, and has lowered its revenue forecast for 2024 to 2026 by 3% to 7% and its target price by 11% to HKD 55.1, while maintaining a "buy" rating.
大行评级｜高盛：下调腾讯音乐目标价至55.1港元 看好其长期增长前景
Goldman Sachs downgraded Tencent Music's target price to HKD 55.1 and is bullish on its long-term growth prospects.
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