Analyst Saiyi He of CMB International Securities maintained a Buy rating on Tencent Music Entertainment Group, with a price target of $29.50.
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Saiyi He has given his Buy rating due to a combination of factors, primarily the strong financial performance of Tencent Music Entertainment Group in the second quarter of 2025. The company reported an impressive 18% year-over-year increase in total revenue and a 37% rise in non-IFRS net income, both of which surpassed Bloomberg’s consensus estimates. This growth is largely driven by the robust expansion of non-subscription music revenue, including advertising, artist-related merchandise, and offline performances.
Looking ahead, Saiyi He expects the momentum in the online music business to persist, forecasting further revenue and net income growth in the third quarter of 2025. The analyst has also raised the earnings forecast for the fiscal years 2025 to 2027, reflecting emerging opportunities in the music industry. These include synergies between artist-related merchandise, offline performances, and the music subscription business. Consequently, the target price for TME’s stock has been increased to $29.5, reinforcing the Buy recommendation.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a $30.00 price target.
TME’s price has also changed dramatically for the past six months – from $12.760 to $25.600, which is a 100.63% increase.