Tencent Music Entertainment Group, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Alicia Yap from Citi maintained a Buy rating on the stock and has a $29.00 price target.
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Alicia Yap’s rating is based on Tencent Music Entertainment Group’s strategic initiatives and strong market positioning. Despite a temporary dip in share price due to investor caution over potential competition from Bytedance’s Soda Music, Yap views this as an opportunity for accumulation. She highlights TME’s transformation into a comprehensive music ecosystem, which enhances user experience and artist engagement through diversified monetization strategies. The integration with Tencent’s gaming and video assets further strengthens TME’s unique value proposition.
Alicia Yap also notes the company’s robust financial outlook, with projected revenue and net profit growth in the coming years. The multi-tier membership model and focus on expanding the music concert portfolio are expected to drive subscription growth and diversify revenue streams. TME’s competitive edge lies in its extensive music library and expertise in music asset management, ensuring a high-quality listening experience that differentiates it from competitors. These factors collectively support the Buy rating with a target price of US$29.
In another report released today, Barclays also maintained a Buy rating on the stock with a $28.00 price target.