Daiwa Securities Group Reiterates "Hold" Rating for Tencent Music Entertainment Group (NYSE:TME)

Key Points

• Daiwa Securities Group reiterated a "hold" on Tencent Music (TME) with a $12 price target, implying about a 13.8% upside from recent levels.
• Analyst coverage is mixed — MarketBeat's consensus is a Moderate Buy with an average target of $22.69, while several firms have trimmed targets even as some keep buy/outperform ratings.
• TME posted a Q4 revenue beat and finished 2025 with ~127.4M paying music subscribers, but an EPS miss and a guidance/user-metrics disclosure change prompted investor pushback and a sharp stock sell-off.

Tencent Music Entertainment Group (NYSE:TME - Get Free Report)'s stock had its "hold" rating reissued by equities researchers at Daiwa Securities Group in a research note issued to investors on Wednesday, Marketbeat.com reports. They currently have a $12.00 target price on the stock. Daiwa Securities Group's price objective would suggest a potential upside of 13.80% from the stock's current price.

Several other analysts have also commented on the company. Mizuho dropped their target price on Tencent Music Entertainment Group from $28.00 to $23.00 and set an "outperform" rating on the stock in a report on Wednesday. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $12.00 price target on shares of Tencent Music Entertainment Group in a research note on Wednesday. Jefferies Financial Group reaffirmed a "buy" rating and set a $23.00 target price on shares of Tencent Music Entertainment Group in a research note on Tuesday. Morgan Stanley dropped their price objective on shares of Tencent Music Entertainment Group from $27.50 to $25.00 and set an "overweight" rating for the company in a research note on Monday, December 22nd. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Tencent Music Entertainment Group in a report on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, Tencent Music Entertainment Group presently has an average rating of "Moderate Buy" and a consensus price target of $22.69.

Tencent Music Entertainment Group Stock Performance

TME stock traded down $0.83 during trading on Wednesday, reaching $10.55. The company had a trading volume of 17,607,904 shares, compared to its average volume of 7,703,556. Tencent Music Entertainment Group has a twelve month low of $10.56 and a twelve month high of $26.70. The firm has a 50-day simple moving average of $15.64 and a 200-day simple moving average of $19.23. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.08 and a current ratio of 2.09. The company has a market cap of $18.10 billion, a price-to-earnings ratio of 10.98, a price-to-earnings-growth ratio of 0.95 and a beta of 0.56.

Hedge Funds Weigh In On Tencent Music Entertainment Group

A number of hedge funds have recently made changes to their positions in the stock. Smartleaf Asset Management LLC acquired a new stake in Tencent Music Entertainment Group in the 3rd quarter valued at approximately $31,000. Allworth Financial LP lifted its stake 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 worth $35,000 after purchasing an additional 573 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted its position in shares of Tencent Music Entertainment Group by 5,777.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,057 shares of the company's stock worth $36,000 after buying an additional 2,022 shares during the period. Global Retirement Partners LLC grew its stake in shares of Tencent Music Entertainment Group by 1,326.5% in the third quarter. Global Retirement Partners LLC now owns 1,883 shares of the company's stock valued at $44,000 after buying an additional 1,751 shares in the last quarter. Finally, Kestra Advisory Services LLC acquired a new stake in shares of Tencent Music Entertainment Group in the fourth quarter valued at $46,000. Hedge funds and other institutional investors own 24.32% of the company's stock.

Key Headlines Impacting Tencent Music Entertainment Group

Here are the key news stories impacting Tencent Music Entertainment Group this week:

• Positive Sentiment: Revenue beat and strong online-music growth — Q4 revenue rose ~15.8% to RMB8.64B (US$1.24B), driven by a 21.7% jump in online music services. This supports longer-term monetization trends. Proactive: Tencent Music posts strong Q4 profit but flags key metrics shift
• Positive Sentiment: Paid-user base remains large — Tencent ended 2025 with ~127.4M paying music subscribers, a key support for recurring revenue and ARPU upside. MusicAlly: Paying users
• Positive Sentiment: Mizuho keeps an outperform rating despite trimming its target from $28 to $23 — the new target implies sizeable upside from current levels, showing at least one analyst still expects recovery. Benzinga: Mizuho lowers target
• Neutral Sentiment: Company initiated / changed dividend discussion — analysts and coverage are debating whether a new dividend signals evolving capital priorities or caution; this affects investor return expectations but is not an immediate revenue driver. Yahoo Finance: Dividend analysis
• Neutral Sentiment: Benchmark reaffirmed a hold rating on TME, maintaining conservative near-term expectations. Benzinga: Benchmark hold
• Neutral Sentiment: JPMorgan reaffirmed a neutral rating with a $12 target — a modest upside relative to current levels that signals limited near-term catalyst from that shop.
• Neutral Sentiment: Pre-earnings momentum had pushed the stock higher into the report as investors positioned for results, amplifying volatility around the print. InsiderMonkey: Pre-earnings rally
• Negative Sentiment: EPS missed expectations — reported EPS $0.11 vs. consensus $0.23, which, despite the revenue beat, raised concerns about margin drivers and near-term profitability. MarketBeat: Earnings details
• Negative Sentiment: Guidance miss and disclosure change on user metrics triggered a sharp sell-off — management’s shift in how it reports user metrics, plus guidance that disappointed investors, amplified AI-related concerns and led to a notable drop in the stock. MarketWatch: Shares plunge
• Negative Sentiment: Earnings call and transcripts reveal investor pushback — read management commentary for details on metric changes and forward commentary; the tone matters for near-term sentiment. Seeking Alpha: Earnings call transcript

Tencent Music Entertainment Group Company Profile

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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