Tencent Music Entertainment Group Receives 'Moderate Buy' Consensus Rating
Tencent Music Entertainment Group (NYSE:TME) has been given a consensus rating of "Moderate Buy" by thirteen brokerages currently covering the stock, according to Marketbeat.com. Among these analysts, four have assigned a hold rating, while nine have issued buy ratings. The average target price forecast for the next 12 months amounts to $12.67, reflecting a generally positive outlook.
Recently, several financial analysts have updated their views on the company’s stock. Morgan Stanley lowered their rating from "overweight" to "equal weight" and adjusted their price target from $15.00 down to $13.00 in a report dated September 25. Similarly, Daiwa Capital Markets revised its rating from "outperform" to "neutral" in an analysis released on August 13, where they also downgraded their target price. Another notable downgrade came from Benchmark, which reduced its price target from $19.00 to $15.00 while maintaining a "buy" rating as of the same date. In another report, Mizuho also cut their price objective on the stock from $17.00 to $16.00, continuing to hold an "outperform" rating.
Institutional Investors and Shareholders
In addition to analysts, there have been significant movements among institutional investors regarding Tencent Music shares. For instance, GAM Holding AG boosted its holdings by 108% in the third quarter, acquiring an additional 95,000 shares. Ariose Capital Management Ltd also made headlines by purchasing a new stake valued at approximately $12 million during the same period. Allspring Global Investments increased its stake by 14.4%, now holding about 5.97 million shares worth approximately $72 million. Other institutional moves included Blue Trust Inc. increasing its holdings by 31.5%, and Harbour Capital Advisors acquiring a new stake worth $378,000. Institutional investors now hold 24.32% of the company's total shares.
Recent Performance of Tencent Music Stock
As for its market performance, Tencent Music's stock saw a slight decline of 1.7%, opening at $11.60. The company has a low debt-to-equity ratio of 0.09 and a robust current ratio of 2.34, indicating good financial health. Over the last year, Tencent Music's stock price has fluctuated, hitting a low of $6.76 and a high of $15.77. With a market cap of around $19.91 billion, its P/E ratio stands at 25.22, and it has a beta of 0.66.
Latest Earnings Report
Tencent Music released its latest quarterly earnings on August 13, reporting earnings per share of $0.15, which fell short of the consensus expectation of $0.16. The company reported total revenues of $985 million for the quarter, again below the projected $1 billion. Tencent Music posted a return on equity of 10.11% and a net margin of 20.35%, highlighting the competitive edge it holds in the market. Analysts forecast the company may achieve an EPS of 0.62 for the current fiscal year.
About Tencent Music Entertainment Group
Tencent Music Entertainment Group primarily operates online music entertainment platforms in the People’s Republic of China. They provide a variety of services including music streaming, online karaoke, and live streaming. Their key products include QQ Music, Kugou Music, and Kuwo Music, which offer users unique ways to discover and enjoy music. Additionally, their WeSing platform allows users to engage in karaoke by singing along with an extensive library of songs.
Tencent, Music, Investment