CMB International Securities analyst Saiyi He maintained a Buy rating on Tencent Music Entertainment Group (TME – Research Report) today and set a price target of $16.50.
Saiyi He has given his Buy rating due to a combination of factors including Tencent Music Entertainment Group’s strong financial performance and growth prospects. The company reported an 8% year-over-year increase in total revenue for the fourth quarter of 2024, aligning with market expectations, and a significant 45% rise in non-IFRS net income, surpassing consensus estimates by 15%. This impressive growth is attributed to effective gross profit margin expansion and operational expense control.
Furthermore, the online music segment showed robust growth, with a 16% increase in revenue and a notable rise in subscriber numbers and average revenue per paying user. Looking forward to fiscal year 2025, the company anticipates continued revenue acceleration and margin expansion. Additionally, Tencent Music has announced shareholder-friendly initiatives, including a cash dividend and a substantial share repurchase program, which are expected to enhance shareholder returns.
He covers the Communication Services sector, focusing on stocks such as Baidu, Iqiyi, and Meta Platforms. According to TipRanks, He has an average return of 19.7% and a 64.09% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $16.00 price target.
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