Barclays Raises Tencent Music Price Target to $27 Amid Positive Outlook

Barclays has raised its price target for Tencent Music Entertainment Group (TME) from $16 to $27, representing a 68.75% increase. Despite the change, Barclays maintains its "Overweight" rating, indicating a positive outlook for the company. The average target price from 28 analysts is $19.44, with a high estimate of $26.18 and a low estimate of $11.99.

In a significant move, Barclays has elevated its price target for Tencent Music Entertainment Group (TME) from $16.00 to $27.00, representing a substantial 68.75% increase. Despite this upward revision, the analyst Jiong Shao from Barclays has retained the "Overweight" rating, reflecting a positive outlook for the company [1].

This adjustment comes amid ongoing market conditions and company performance assessments by Barclays. Tencent Music, the largest online music streaming platform in China, has seen its stock price surge, trading near its 52-week high of $25.98 [2].

Analysts across the board are optimistic about Tencent Music's prospects. The average target price from 28 analysts is $19.44, with a high estimate of $26.18 and a low estimate of $11.99. The consensus recommendation from 29 brokerage firms is a "Buy" rating, indicating "Outperform" status [1].

Tencent Music reported strong second-quarter results, with online music services generating RMB 6.85 billion (US$957 million), up 26.4% year-over-year. Music subscription revenue climbed 17.1% to RMB 4.38 billion (US$611 million), and monthly average revenue per paying user (ARPPU) increased to RMB 11.7 from RMB 10.7 a year earlier [3].

The company's expansion into partnerships with record labels and artists, both domestically and internationally, has bolstered its offerings. For instance, TME has strengthened its K-pop offerings by collaborating with The Black Label and H MUSIC. Additionally, the company has partnered with DearU to launch bubble on QQ Music, an interactive community that allows users to engage directly with K-pop artists [3].

These developments underscore the positive sentiment surrounding Tencent Music's financial performance and growth potential. The company continues to invest in AI, content library, premium SVIP features, collectible fandom, concert production, and cross-media integration, positioning itself as a comprehensive music and entertainment platform [2].

References:
[1] https://www.gurufocus.com/news/3057220/barclays-raises-price-target-for-tencent-music-tme-to-27-tme-stock-news?mobile=true
[2] https://www.investing.com/news/analyst-ratings/tencent-music-entertainment-stock-price-target-raised-to-28-at-benchmark-93CH-4188995
[3] https://fxdailyreport.com/tencent-music-entertainment-group-nysetme-tops-estimates/