As previously reported, Loop Capital analyst Rob Sanderson initiated Tencent Music with a Buy rating and a price target of $19. The analyst is positive on the company blending its music product and social entertainment, with the revenue growth of the latter driven by "livestreaming and online karaoke" products. Sanderson adds that Tencent Music's monetization from virtual gifting and margins are higher than that of other music distributors, and he sees a large opportunity to expand the company's paid user participation in social activities on the platform that will also lead to accelerating growth in its premium music subscriptions.