Tencent Music Entertainment Group Sponsored ADR (NYSE:TME) Receives Average Rating of "Hold" from Brokerages

Key Points

• Analyst consensus is “Hold”: Ten of 13 brokerages rate Tencent Music Entertainment Group neutral, while three recommend buying. The average 12-month price target is $17.21, well above the reported $8.55 share price.
• Recent analyst actions were mixed but generally cautious: Zacks upgraded the stock to “Hold,” while JPMorgan lowered its target to $10 and China Renaissance downgraded the shares to “Hold” with a $9.30 target.
• Fundamentals and ownership: Tencent Music reported quarterly revenue of $1.31 billion and EPS of $0.25, with a 26.27% net margin. Hedge funds and other institutional investors own 24.32% of the company, while the stock remains near its one-year low of $7.94.

Shares of Tencent Music Entertainment Group Sponsored ADR (NYSE:TME - Get Free Report) have been given an average rating of "Hold" by the thirteen ratings firms that are presently covering the firm, Marketbeat.com reports. Ten equities research analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $17.2091.

TME has been the subject of a number of research analyst reports. Zacks Research upgraded Tencent Music Entertainment Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 19th. JPMorgan Chase & Co. dropped their price target on Tencent Music Entertainment Group from $12.00 to $10.00 and set a "neutral" rating on the stock in a research report on Thursday, May 14th. UBS Group set a $15.00 price objective on Tencent Music Entertainment Group in a research report on Wednesday, August 12th. China Renaissance downgraded Tencent Music Entertainment Group from a "buy" rating to a "hold" rating and set a $9.30 target price on the stock. in a report on Wednesday, August 12th. Finally, Nomura set a $10.00 price target on shares of Tencent Music Entertainment Group and gave the stock a "neutral" rating in a research report on Thursday, August 13th.

Institutional Investors Weigh In On Tencent Music Entertainment Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Allworth Financial LP raised its position in Tencent Music Entertainment Group by 63.2% during the third quarter. Allworth Financial LP now owns 1,480 shares of the company's stock valued at $35,000 after acquiring an additional 573 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its position in shares of Tencent Music Entertainment Group by 5,777.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 2,057 shares of the company's stock worth $36,000 after purchasing an additional 2,022 shares during the last quarter. Smartleaf Asset Management LLC lifted its holdings in shares of Tencent Music Entertainment Group by 61.3% during the fourth quarter. Smartleaf Asset Management LLC now owns 2,123 shares of the company's stock worth $37,000 after buying an additional 807 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in Tencent Music Entertainment Group during the 4th quarter valued at $46,000. Finally, EverSource Wealth Advisors LLC lifted its stake in shares of Tencent Music Entertainment Group by 83.0% in the second quarter. EverSource Wealth Advisors LLC now owns 3,005 shares of the company's stock valued at $59,000 after buying an additional 1,363 shares during the period. 24.32% of the stock is owned by hedge funds and other institutional investors.

Tencent Music Entertainment Group Price Performance

TME stock opened at $8.55 on Monday. The company has a current ratio of 1.74, a quick ratio of 1.74 and a debt-to-equity ratio of 0.13. Tencent Music Entertainment Group has a one year low of $7.94 and a one year high of $26.70. The firm has a market capitalization of $13.46 billion, a PE ratio of 10.56, a P/E/G ratio of 1.50 and a beta of 0.84. The firm has a 50-day moving average of $8.90 and a two-hundred day moving average of $10.14.

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

About Tencent Music Entertainment Group

Tencent Music Entertainment Group NYSE: TME is a China-based digital music and audio entertainment platform that operates a portfolio of leading music streaming and social entertainment services. Its core consumer-facing products include streaming apps, online karaoke (KTV) services and live music and entertainment broadcasts. The company monetizes its content through a mix of subscriptions, digital music sales, in-app purchases, virtual gifting, advertising and licensing arrangements with rights holders.

The company traces its roots to the consolidation of Tencent's music assets and was established in the mid-2010s to unify several prominent music properties under a single operating entity.

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