In a report released today, Saiyi He from CMB International Securities maintained a Buy rating on Tencent Music Entertainment Group (TME – Research Report), with a price target of $17.50.
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Saiyi He has given his Buy rating due to a combination of factors including Tencent Music Entertainment Group’s strong financial performance and growth prospects. The company reported a 9% year-over-year increase in total revenue for the first quarter of 2025, with non-IFRS net income rising by 25%, aligning with market expectations. The online music segment showed robust growth, supported by an increase in both music subscribers and average revenue per paying user (ARPPU).
Looking forward, Saiyi He anticipates continued momentum in the online music business, with projected revenue growth of 12% year-over-year in the second quarter of 2025. The margin expansion trend is expected to persist, driven by operating leverage and a focus on self-produced content. These factors, along with a strong competitive position and business model, underpin the optimistic outlook for Tencent Music’s earnings growth, leading to the Buy recommendation.
According to TipRanks, He is a 5-star analyst with an average return of 13.9% and a 62.80% success rate. He covers the Communication Services sector, focusing on stocks such as Baidu, Iqiyi, and Tencent Music Entertainment Group.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $17.00 price target.