Tencent Music downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Alex Yao downgraded Tencent Music (TME) to Neutral from Overweight with a $12 price target The firm says the shares are “transitioning from a visible subscription-compounding story to a broader but lower-visibility multi-engine monetization story.” Tencent Music’s Q4 results indicate the business is becoming more diversified across subscriptions, advertising, offline performances, artist merchandise, and intellectual property-linked monetization, the analyst tells investors in a research note. JPMorgan cut estimates, saying Tencent Music’s subscription revenue is likely to slow down.