According to "The Big Firms," China Merchants Securities has lowered the target price for Tencent Music to $25.6, and the decline in stock price provides a good entry opportunity

The report from China Merchants Securities indicates that Tencent Music-SW (01698.HK) exceeded expectations in the third quarter, with revenue increasing by 21% year-on-year. The momentum came from strong growth in non-subscription business, which rose by 51% year-on-year, while subscription business also showed steady growth, increasing by 17% year-on-year. Non-GAAP net profit exceeded expectations by 4%. The stock price drop last night (13th) provided a good entry opportunity. Rating: "Buy."

The firm remains optimistic about Tencent Music's solid moat established through its rich content and services; the risk-reward profile is attractive; the target price for the US stock (TME.US) has been revised down from $29.2 to $25.6