Tencent Music Entertainment Group (TME) PT Raised to $17 at Mizuho
Mizuho analyst Wei Fang raised the price target on Tencent Music Entertainment Group (NYSE: TME) to $17.00 (from $16.00) while maintaining a Outperform rating.
The analyst comments "TME delivered a clean quarter with both revenue and margins above expectations. The steady execution in core music speaks volumes about TME’s value proposition to music lovers and management’s capability in pacing balanced growth ahead. Social segment also presented a positive surprise with sequential revenue growth, indicating stabilizing fundamentals. If sustainable, it could potentially lift consolidated revenue growth to double-digits vs. high-single-digits in our model for FY25. We remain constructive on TME due to its category leading position in the low-penetrated online music industry in China. Lift our FY26 EBITDA estimate by 3% to RMB 12bn on better margin outlook. Maintain Outperform and raise PT to $17 from $16."