Tencent Music Entertainment Group (NYSE:TME) Stock Moved Up to "Strong-Buy" by China Renaissance

Key Points

• China Renaissance upgraded Tencent Music Entertainment Group from “hold” to “strong buy,” though the broader analyst consensus remains “hold,” with a $17.21 average price target.
• TME shares opened at $8.47, near their 12-month low of $7.66 and well below the 12-month high of $23.85; the company has a $13.34 billion market capitalization and a P/E ratio of 10.46.
• The company reported quarterly earnings of $0.25 per share on $1.31 billion in revenue, while institutional investors and hedge funds own 24.32% of its stock.

Tencent Music Entertainment Group (NYSE:TME - Get Free Report) was upgraded by investment analysts at China Renaissance from a "hold" rating to a "strong-buy" rating in a report released on Wednesday, Zacks reports.

Several other equities research analysts have also recently commented on the company. Mizuho decreased their target price on Tencent Music Entertainment Group from $18.00 to $15.00 and set an "outperform" rating for the company in a research note on Wednesday, August 12th. UBS Group set a $15.00 target price on Tencent Music Entertainment Group in a report on Wednesday, August 12th. Nomura set a $10.00 price target on Tencent Music Entertainment Group and gave the company a "neutral" rating in a research note on Thursday, August 13th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Tencent Music Entertainment Group in a report on Monday, September 28th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $17.21.

Tencent Music Entertainment Group Stock Performance

Shares of TME opened at $8.47 on Wednesday. The company has a current ratio of 1.74, a quick ratio of 1.74 and a debt-to-equity ratio of 0.13. The firm's fifty day simple moving average is $8.38 and its two-hundred day simple moving average is $8.86. Tencent Music Entertainment Group has a 12 month low of $7.66 and a 12 month high of $23.85. The stock has a market capitalization of $13.34 billion, a P/E ratio of 10.46, a price-to-earnings-growth ratio of 1.49 and a beta of 0.78.

Tencent Music Entertainment Group (NYSE:TME - Get Free Report) last posted its quarterly earnings data on Tuesday, June 30th. The company reported $0.25 earnings per share for the quarter. The firm had revenue of $1.31 billion during the quarter. Tencent Music Entertainment Group had a return on equity of 11.53% and a net margin of 26.27%. As a group, analysts predict that Tencent Music Entertainment Group will post 0.87 EPS for the current year.

Hedge Funds Weigh In On Tencent Music Entertainment Group

Several institutional investors have recently made changes to their positions in the stock. Overlook Investments LP acquired a new position in Tencent Music Entertainment Group during the fourth quarter worth $278,022,000. Allspring Global Investments Holdings LLC lifted its stake in shares of Tencent Music Entertainment Group by 21.3% in the first quarter. Allspring Global Investments Holdings LLC now owns 4,246,363 shares of the company's stock valued at $39,024,000 after buying an additional 744,490 shares in the last quarter. Sei Investments Co. grew its holdings in shares of Tencent Music Entertainment Group by 10.4% during the first quarter. Sei Investments Co. now owns 3,980,820 shares of the company's stock valued at $36,942,000 after buying an additional 374,586 shares during the last quarter. Amundi grew its holdings in shares of Tencent Music Entertainment Group by 13.6% during the first quarter. Amundi now owns 3,350,991 shares of the company's stock valued at $31,097,000 after buying an additional 401,396 shares during the last quarter. Finally, Carmignac Gestion increased its position in shares of Tencent Music Entertainment Group by 2,635.9% during the first quarter. Carmignac Gestion now owns 2,881,153 shares of the company's stock worth $26,740,000 after acquiring an additional 2,775,843 shares in the last quarter. Institutional investors and hedge funds own 24.32% of the company's stock.

Tencent Music Entertainment Group Company Profile

Tencent Music Entertainment Group NYSE: TME is a China-based online music and audio entertainment company. It operates digital music and entertainment platforms that provide music streaming, digital content, social interaction and other music-related services to users primarily in China.

The company's principal services include QQ Music, Kugou Music and Kuwo Music, which offer licensed music, personalized recommendations, digital albums and other audio content. Tencent Music also operates WeSing, a karaoke and social entertainment platform, along with live-streaming, advertising, artist services and other products designed to connect musicians, content creators and audiences.

Tencent Music was established in 2016 through the combination of Tencent's music businesses and China Music Corporation.

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