Tencent Music sees rating upgrade at Goldman on sustained subscription momentum

Goldman Sachs upgraded Tencent Music Entertainment (NYSE:TME) to Buy from Neutral citing sustained subscription momentum and music gross margin expanding towards 45%. The firm has a $14 price target on the stock. A team of analysts led by Lincoln Kong said that Tencent Music has been among the best performers within their China Internet coverage in the past six months, and they expect such outperformance to continue on — further upwards earnings revisions from operating leverage generated through high incremental margin of music subscription, advertisement. The outperformance would continue also because of — further beat-and-raise of music services revenue driven…