Sanford C. Bernstein Initiates Coverage of Tencent Music Entertainment Group

On Monday morning, Sanford C. Bernstein announced the initiation of coverage on Tencent Music Entertainment Group (NYSE:TME – Free Report), as reported by MarketBeat Ratings. In their research report, the brokerage assigned an outperform rating to the stock and set a price target of $14.00.

Tencent Music Entertainment Group has recently garnered attention from several other institutions as well. Notably, Bank of America lowered its target price for the company from $18.00 to $15.00 while maintaining a “buy” rating in a report published on August 14. Similarly, Daiwa Capital Markets adjusted their rating from “outperform” to “neutral” on August 13. Mizuho also revised their target price down from $17.00 to $16.00, but retained an “outperform” rating for the company on the same date.

Another investment firm, Benchmark, cut their price target from $19.00 to $15.00 while maintaining a “buy” rating as of August 14. Furthermore, Morgan Stanley downgraded Tencent Music from “overweight” to “equal weight” and reduced their price objective from $15.00 to $13.00 in a report dated September 25. Overall, four analysts recommend holding the stock, while eleven have rated it as a buy. As per data from MarketBeat.com, Tencent Music Entertainment Group has a consensus rating of “Moderate Buy” and an average target price of $13.03.

Overview of Tencent Music Entertainment Group Stock Performance

Shares of Tencent Music Entertainment Group traded at $11.79 at the market opening on Monday. The company has a current ratio and quick ratio of 2.34, alongside a low debt-to-equity ratio of 0.09. Over the past twelve months, Tencent Music has recorded a low of $6.76 and a high of $15.77, contributing to a market capitalization of $20.23 billion. Other financial metrics include a price-to-earnings (P/E) ratio of 23.58, a PEG ratio of 0.83, and a beta value of 0.67. The firm’s 50-day moving average is $11.34, while the 200-day moving average stands at $12.86.

The last earnings results for Tencent Music were disclosed on August 13, when they reported earnings of $0.15 per share, narrowly missing the consensus estimate of $0.16 by $0.01. The company’s net margin was noted at 20.35% with a return on equity of 10.11%. For the quarter, Tencent reported revenue of $985.00 million, which was below the consensus expectation of $1 billion. Analysts predict that Tencent Music will achieve an EPS of 0.63 for the current financial year.

Institutional Investors and Tencent Music Entertainment Group

Recently, various institutional investors have adjusted their stakes in Tencent Music Entertainment Group. QRG Capital Management Inc. increased its holdings by 5.7% during the second quarter, bringing their total to 15,843 shares valued at approximately $223,000 after acquiring an additional 860 shares. DekaBank Deutsche Girozentrale raised its position by 0.9% during the same quarter, now owning 101,442 shares worth $1,403,000 after purchasing an additional 922 shares.

Additionally, Tobam boosted its investment in Tencent Music by 37.7% in the second quarter, owning 3,498 shares worth $49,000 after adding 957 shares. Atomi Financial Group Inc. also increased its stake by 6.1%, acquiring 1,561 additional shares that brought their holdings to 26,996 shares valued at $379,000. Diversify Wealth Management LLC raised its holdings by 3.9% in the third quarter, now owning 49,146 shares valued at $570,000 after purchasing an additional 1,862 shares. Institutional investors currently hold 24.32% of Tencent Music Entertainment Group’s stock.

About Tencent Music Entertainment Group

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Tencent Music Entertainment Group operates several online music entertainment platforms offering music streaming, online karaoke, and live streaming services primarily in China. Their services include QQ Music, Kugou Music, and Kuwo Music, which allow users to discover music in a personalized manner, as well as long-form audio content such as audiobooks, podcasts, and live performances. WeSing, another offering from the company, enables users to sing karaoke from its vast library and share their performances with friends.

Final Thoughts

As analysts continue to evaluate Tencent Music Entertainment Group and its prospects, these ratings and recommendations may influence investor sentiment towards the stock and impact its future performance in the market.

Tencent, Music, Stock, Analysts