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<Research> Nomura Cuts TME (TME.US) TP to USD12.5, Lowers Earnings Forecast
Recommend 5 Positive 2 Negative 4 |
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Nomura issued a research report lowering the target price of TME (TME.US) substantially from USD26 to USD12.5, while maintaining a "Buy" rating. The broker noted that the companys share price has fallen by a cumulative 43% year to date, significantly underperforming the China internet sector. This mainly reflects managements reduction of its FY2026 subscription revenue growth guidance by 6 ppts after the fourth-quarter results, as well as market concerns over intensifying competition. Nomura estimated that TMEs revenue in the first quarter rose 7.6% YoY to RMB7.9 billion, in line with market expectations. Subscription revenue increased 6% YoY, supported by a 5% growth in paying users and a 1% rise in average revenue per paying user (ARPPU). The broker lowered its FY2026 and FY2027 earnings forecasts for TME by 4% and 8%, respectively, primarily reflecting a more conservative outlook on subscription revenue. (ec/a) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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