Analysts Initiate Coverage on Tencent Music Entertainment Group

On November 8, 2024, analysts at Sanford C. Bernstein announced that they have begun coverage of Tencent Music Entertainment Group (NYSE:TME – Free Report). In their research report released in the morning, they assigned an outperform rating to the stock along with a price target of $14.00.

TME's shares have received attention from several financial institutions recently. For instance, on August 14, Bank of America lowered its price target for the company from $18.00 to $15.00 while maintaining a "buy" rating. Similarly, Daiwa Capital Markets revised their stance on TME from "outperform" to "neutral" on August 13. Mizuho also adjusted their target from $17.00 to $16.00, keeping an "outperform" rating. Benchmark followed suit, dropping their price target from $19.00 to $15.00 and reiterating a "buy" rating.

On September 25, Morgan Stanley changed their rating from "overweight" to "equal weight", setting a new target price of $13.00. Currently, four analysts have a hold rating on the stock, while eleven have issued a buy rating. According to MarketBeat.com, TME holds an average rating of "Moderate Buy" with a consensus target price of $13.03.

Tencent Music Entertainment Group Stock Overview

The stock opened at $11.79 on the day of the report. Tencent Music has a robust current ratio of 2.34 and a quick ratio of 2.34, indicating strong liquidity. The company maintains a low debt-to-equity ratio of 0.09. Over the past year, TME's stock price has fluctuated significantly, with a low of $6.76 and a high of $15.77. The company's total market capitalization stands at $20.23 billion, with a price-to-earnings ratio of 23.58 and a PEG ratio of 0.83. Its 50-day and 200-day moving averages are $11.34 and $12.86, respectively.

Recently, Tencent Music Entertainment Group reported its earnings on August 13. For the quarter, the company posted earnings per share (EPS) of $0.15, falling short of the analysts' expectation of $0.16. Tencent recorded a net margin of 20.35% and a return on equity of 10.11%. The quarter's revenue came in at $985 million, which was below the anticipated $1 billion. Analysts predict TME will provide an EPS of 0.63 for the current year.

Institutional Investment Activity

In the recent past, various institutional investors have adjusted their positions with Tencent Music stock. QRG Capital Management Inc. increased their holdings by 5.7% in the second quarter, now possessing 15,843 shares valued at approximately $223,000 after acquiring additional shares. DekaBank Deutsche Girozentrale also slightly raised its stake by 0.9% during the same period, now holding 101,442 shares worth $1.403 million. Furthermore, Tobam boosted its position in TME by 37.7%, now owning shares worth about $49,000.

Atomi Financial Group Inc. and Diversify Wealth Management LLC also increased their stakes in the second quarter by 6.1% and 3.9%, respectively. They now hold shares valued at $379,000 and $570,000. Overall, institutional investors own around 24.32% of the company’s stock.

Tencent Music Entertainment Group Overview

Tencent Music Entertainment Group operates various online platforms in China that deliver music streaming, online karaoke, and live streaming services. The company offers popular services like QQ Music, Kugou Music, and Kuwo Music, allowing users to discover music tailored to their preferences. In addition to traditional music streaming, Tencent provides long-form audio content such as audiobooks and podcasts, along with video content featuring music performances and short clips. Their karaoke app, WeSing, enables users to sing along to a vast catalog of songs and share their performances with friends.

Tencent, Music, Investment