Tencent Music downgraded to Neutral from Outperform at Macquarie

Macquarie downgraded Tencent Music (TME) to Neutral from Outperform with a $14.10 price target Emerging competitive pressure from Soda Music is likely to persist, weighing on Tencent Music’s ARPPU upside and user acquisition, the analyst tells investors in a research note. Near-term earnings visibility is likely to be “blurred” by Soda’s aggressive push, while K-content remains an upside optionality, the firm says.