Mizuho Cuts Tencent Music Entertainment Group (NYSE:TME) Price Target to $23.00

Key Points

• Mizuho cut its price target for Tencent Music from $28 to $23 while maintaining an "outperform" rating, implying roughly a 103% upside from the current ~$11.35 share price.
• Although Q4 revenue beat with strong online-music growth and ~127.4 million paying users, a material EPS miss, guidance/disclosure changes and AI-related investor fears triggered a sharp sell-off that left the stock down 24.8% and produced mixed analyst views (average rating "Moderate Buy", average PT $24.73).

Tencent Music Entertainment Group (NYSE:TME - Get Free Report) had its price target cut by Mizuho from $28.00 to $23.00 in a research note issued on Wednesday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Mizuho's price objective would indicate a potential upside of 102.73% from the stock's current price.

Other equities analysts also recently issued reports about the company. Jefferies Financial Group restated a "buy" rating and set a $23.00 price objective on shares of Tencent Music Entertainment Group in a research report on Tuesday. Benchmark reiterated a "hold" rating on shares of Tencent Music Entertainment Group in a report on Wednesday. JPMorgan Chase & Co. reissued a "neutral" rating and set a $12.00 target price on shares of Tencent Music Entertainment Group in a research report on Wednesday. Weiss Ratings restated a "hold (c+)" rating on shares of Tencent Music Entertainment Group in a report on Monday, December 29th. Finally, Morgan Stanley dropped their price target on shares of Tencent Music Entertainment Group from $27.50 to $25.00 and set an "overweight" rating on the stock in a research report on Monday, December 22nd. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $24.73.

Tencent Music Entertainment Group Stock Down 24.8%

Shares of TME opened at $11.35 on Wednesday. The stock's 50-day moving average price is $15.64 and its two-hundred day moving average price is $19.23. Tencent Music Entertainment Group has a 12 month low of $11.33 and a 12 month high of $26.70. The company has a market capitalization of $19.47 billion, a PE ratio of 11.82, a PEG ratio of 0.95 and a beta of 0.56. The company has a current ratio of 2.09, a quick ratio of 2.08 and a debt-to-equity ratio of 0.04.

Institutional Investors Weigh In On Tencent Music Entertainment Group

Several institutional investors and hedge funds have recently made changes to their positions in the business. Corient Private Wealth LLC grew its stake in Tencent Music Entertainment Group by 1.6% in the second quarter. Corient Private Wealth LLC now owns 32,213 shares of the company's stock valued at $628,000 after acquiring an additional 498 shares during the period. Allworth Financial LP raised its position in shares of 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 during the period. O Shaughnessy Asset Management LLC lifted its holdings in shares of Tencent Music Entertainment Group by 0.5% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 132,635 shares of the company's stock worth $2,325,000 after purchasing an additional 610 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Tencent Music Entertainment Group by 5.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 13,553 shares of the company's stock worth $264,000 after purchasing an additional 651 shares in the last quarter. Finally, Vise Technologies Inc. grew its position in Tencent Music Entertainment Group by 5.0% in the 4th quarter. Vise Technologies Inc. now owns 14,648 shares of the company's stock valued at $257,000 after purchasing an additional 692 shares during the period. Institutional investors own 24.32% of the company's stock.

Key Tencent Music Entertainment Group News

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 ~15.8–15.9% YoY to about $1.24B, with online-music revenue up ~21.7% (RMB7.10B), signaling durable top-line momentum in the core business. ProactiveInvestor Article
• Positive Sentiment: Large paying-user base: Tencent Music ended 2025 with ~127.4 million paying users, supporting recurring revenue and showing continued monetization of its audience. MusicAlly Article
• Neutral Sentiment: Strong margins and profitability metrics: The company reported solid net margin (~34%) and ROE (~11.1%), underscoring cash-generative operations even amid growth transitions. MarketBeat Earnings Summary
• Negative Sentiment: Material EPS miss: Reported EPS of $0.11 missed consensus (~$0.23) by a wide margin, a key driver of the negative market reaction despite the revenue beat. MarketBeat Earnings Summary
• Negative Sentiment: Guidance miss and disclosure changes spooked investors: Management flagged a guidance miss and announced a planned change in how user metrics are disclosed, creating uncertainty about user trends and future transparency—cited as a principal reason for the sharp sell-off. MarketWatch Article
• Negative Sentiment: AI-related investor fears and user-growth skepticism: Coverage and call commentary highlighted concerns that AI-driven changes in content and monetization could pressure engagement/ARPU; analyst views were mixed, amplifying volatility. Yahoo Finance Article
• Negative Sentiment: Conference call details and analyst divergence: The earnings-call transcript shows pushback and mixed analyst views on outlook, leaving guidance and execution questions unresolved. Seeking Alpha 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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