Tencent Music Entertainment Group's Q2 Performance Supports Buy Rating and $28 Price Target

Benchmark Co. analyst Fawne Jiang maintains a Buy rating on Tencent Music Entertainment Group with a $28.00 price target. Jiang cites strong Q2 performance, year-over-year growth in non-subscription music revenues, and TME's innovative approach to product and technology as reasons for the rating. Jiang expects TME to become a comprehensive music and entertainment platform, benefiting from a scalable ecosystem and ongoing investments in AI, content expansion, and premium features.

Benchmark Co. analyst Fawne Jiang has maintained a Buy rating on Tencent Music Entertainment Group (TME) with a new price target of $28.00. Jiang's positive outlook is based on the company's strong second-quarter performance, particularly the 46% year-over-year growth in non-subscription music revenues [1]. This growth is driven by rising entertainment spending in China and TME's innovative approach to product and technology, positioning it as a key player in the evolving entertainment landscape [1].

Jiang expects TME to evolve into a comprehensive music and entertainment platform, benefiting from a scalable ecosystem that spans multiple verticals. The company's ongoing investments in AI, content expansion, and premium features are expected to enhance user engagement and long-term growth [1]. These strengths, along with favorable industry trends, justify a premium valuation, leading to an increased price target and a maintained Buy rating.

TME's strong performance has also been recognized by other analyst firms. Barclays reiterated a Buy rating with a $27.00 price target, citing similar factors as Jiang [2]. Jefferies, Mizuho, and Bernstein SocGen Group have also raised their price targets to $28.00, $28.00, and $27.50 respectively, highlighting the company's strengthening music ecosystem and ongoing product development [2].

The positive sentiment surrounding TME's financial performance and growth potential is reflected in the company's stock price, which has surged 126% year-to-date and is trading near its 52-week high of $25.98 [2]. As TME prepares to announce its second-quarter 2025 financial results on August 12, investors can expect to see further updates on the company's growth trajectory and potential.

References:
[1] https://www.tipranks.com/news/ratings/tencent-music-entertainment-group-strong-q2-performance-and-strategic-growth-justify-buy-rating-ratings
[2] https://www.investing.com/news/analyst-ratings/tencent-music-entertainment-stock-price-target-raised-to-28-at-benchmark-93CH-4188995