Tencent Music price target lowered to $25 from $28 at Benchmark

Benchmark lowered the firm’s price target on Tencent Music (TME) to $25 from $28 and keeps a Buy rating on the shares. Tencent Music delivered “solid” Q3 results, but the firm trimmed its gross margin estimate as it believes a continued revenue mix shift toward lower-margin segments may intensify margin pressure in FY26. While the firm says it remains positive on the company’s strategic positioning and growth outlook, it notes that the reversal of the company’s multi-year margin expansion trend “could spark near-term investor debate.”