Morgan Stanley raised the firm’s price target on Tencent Music (TME) to $16.50 from $14.70 and keeps an Overweight rating on the shares. The firm says that with overall positive growth outlook unchanged, average revenue per paying user will contribute more. In Q1 2025, Tencent did well in balancing paying user scale and ARPPU uplifting, with SVIP penetration and less promotion activities in holidays contributing to the growth, Morgan Stanley says. Meanwhile, the company is confident that ARPPU will do more heavy lifting.
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