New Street: TME 1Q21 Results - Results Inline; Lower Margins Ahead
What's new: TME reported 1Q21 top-line results were largely inline with our estimates. We believe that the strong momentum in online music services revenues in 1Q could continue in FY21 driven by upside in subscriptions. However, we lower our PT from USD35 to USD25 on continued softness in SES and increasing investments that could weigh down margins in the near-term. Our PT of USD25 implies 5.9x EV/Revs on our FY22 revenue estimates.Analysts:
Jin Yoon
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- Pan European Telecom Services and Cable
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