Lyon: Downgrade Tencent Music's target price to $23.7, lower next year's adjusted profit forecast.

Lyon released a report stating that Tencent Music's third-quarter financial performance was strong, with revenue and profits surpassing expectations, and showing an increased attractiveness as the preferred music entertainment service provider. However, as the growth drivers continue to shift from subscription services to non-subscription services, requiring greater investment than expected, the bank has lowered Tencent Music's adjusted profit forecast for 2026 by 7%. The bank has reduced its target price for Tencent Music's US stock from $28.5 to $23.7, and for its Hong Kong stock from HK$110.7 to HK$92.1, maintaining an "outperform" rating.