Tencent Music Entertainment Group's stock surges 3.59% on July 8, with analysts forecasting an average target price of $18.85 and a 52-week high of $20.85.

Shares of Tencent Music Entertainment Group (TME) surged 3.59% to $20.76 on July 8. The stock reached an intraday high of $20.85, up from its previous close of $20.04. Trading volume was 5,025,869 shares, 71.7% of the average daily volume of 7,006,314. Analysts forecast an average target price of $18.85, with a high estimate of $26.16 and a low estimate of $11.98, indicating a downside of 9.19% from the current price.

Shares of Tencent Music Entertainment Group (TME) surged 3.59% to $20.76 on July 8, reaching an intraday high of $20.85. The stock closed at $20.04 the previous day. The trading volume was 5,025,869 shares, representing 71.7% of the average daily volume of 7,006,314 shares [1].

The stock's recent performance has been driven by several positive factors. Analysts have been increasingly optimistic about TME's prospects, with a majority rating the stock as a "buy" or "strong buy." Morgan Stanley, Macquarie, Sanford C. Bernstein, Mizuho, and Nomura Securities have all expressed bullish sentiments, with Nomura Securities upgrading TME to a "strong-buy" rating in April [1].

In addition to positive analyst ratings, TME's Q1 2025 performance has been impressive. The company reported a 7.8% increase in revenue and a 168.7% year-over-year (y/y) increase in EBIT. Subscription growth was a key driver, with the number of subscriptions rising from 3,616 to 4,216. As a result, revenue reached $1,010m in the quarter, while EBIT was $625.5m, with margins expanding from 24.8% to 61.9%. Net income rose 200.3% to $591.3m [2].

Analysts have responded to TME's strong performance by raising their target prices. Nomura Securities, for instance, increased its target price from $17.2 to $21.5 following the Q1 results [2]. The current consensus target price is $16.60, with a high estimate of $26.16 and a low estimate of $11.98, indicating a downside of 9.19% from the current price.

TME's strong performance and positive analyst ratings have contributed to its stock price appreciation. Over the past year, TME's stock has delivered robust returns of approximately 39.8%, reflecting a positive fundamental trajectory. However, it is important to note that the stock's P/E ratio of 21.5x is slightly higher than its 3-year historical average of 21.5x, but lower than that of Spotify Technology (71.7x) [2].

Institutional investors have also shown interest in TME. Several hedge funds and other institutional investors have increased their holdings in the company. PNC Financial Services Group Inc., BNP Paribas, Corient Private Wealth LLC, Quadrant Capital Group LLC, and Ballentine Partners LLC have all grown their holdings in TME [1].

References:
[1] https://www.marketbeat.com/instant-alerts/tencent-music-entertainment-group-nysetme-reaches-new-52-week-high-still-a-buy-2025-07-08/
[2] https://www.marketscreener.com/quote/stock/TENCENT-MUSIC-ENTERTAINME-47515600/news/Tencent-Music-delivers-7th-consecutive-quarter-of-sales-growth-50474490/