Tencent Music Entertainment Group (TME) PT Raised to $16.50 at Morgan Stanley

Morgan Stanley analyst Yang Liu raised the price target on Tencent Music Entertainment Group (NYSE: TME) to $16.50 (from $14.70) while maintaining a Overweight rating.

The analyst comments "What has changed? Post 1Q25 earnings, we fine-tune our 2025-27e earnings (changes ~1%). We raise our PT to US$16.50 on two changes: 1) factoring in TME's long-term strategic investment's market value at a 30% holding discount (in line with our approach on Tencent), including 2% stakes in Spotify, 2% stakes in UMG and 0.8% stakes in Warner Music Group. These translate into US$2.00 value per ADS. TME's associate company (a consortium) distributed UMG's shares to TME in 1Q25 is the trigger for this change. 2) We update our year-end 2025 CNY/USD assumption to 7.5 vs. 7.6 previously per our economist's new forecast. Stay OW."

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Stripe, Advent In Talks To Buy Paypal - WSJ
• Freedom Broker Upgrades Serve Robotics (SERV) to Buy