Tencent Music Entertainment Group (NYSE:TME) Stock Rating Lowered by Nomura

Key Points

• Nomura downgraded Tencent Music Entertainment Group from “strong buy” to “hold,” joining a broader cautious analyst view. The stock has a consensus “hold” rating from MarketBeat, with an average price target of $17.21.
• TME shares opened at $8.65, near the lower end of their 12-month range of $7.94 to $26.70, while several firms recently lowered their price targets.
• The company reported quarterly EPS of $0.25 on $1.31 billion in revenue, with a 26.27% net margin; institutional investors own approximately 24.32% of the stock.

Tencent Music Entertainment Group (NYSE:TME - Get Free Report) was downgraded by research analysts at Nomura from a "strong-buy" rating to a "hold" rating in a research note issued on Thursday,Zacks.com reports.

A number of other equities research analysts also recently issued reports on the stock. Zacks Research upgraded shares of Tencent Music Entertainment Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 19th. JPMorgan Chase & Co. decreased their price target on shares of Tencent Music Entertainment Group from $12.00 to $10.00 and set a "neutral" rating on the stock in a report on Thursday, May 14th. China Renaissance cut shares of Tencent Music Entertainment Group from a "buy" rating to a "hold" rating and set a $9.30 price objective for the company. in a research note on Wednesday. UBS Group set a $15.00 price objective on Tencent Music Entertainment Group in a report on Wednesday. Finally, Mizuho cut their target price on Tencent Music Entertainment Group from $18.00 to $15.00 and set an "outperform" rating on the stock in a research report on Wednesday. Three research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat, Tencent Music Entertainment Group currently has a consensus rating of "Hold" and a consensus price target of $17.21.

Tencent Music Entertainment Group Stock Up 2.3%

Shares of NYSE:TME opened at $8.65 on Thursday. The company has a current ratio of 2.09, a quick ratio of 2.08 and a debt-to-equity ratio of 0.06. The firm has a market cap of $13.62 billion, a price-to-earnings ratio of 10.69, a PEG ratio of 1.45 and a beta of 0.84. The stock's 50-day moving average price is $8.95 and its two-hundred day moving average price is $10.75. Tencent Music Entertainment Group has a 12-month low of $7.94 and a 12-month high of $26.70.

Tencent Music Entertainment Group (NYSE:TME - Get Free Report) last posted its quarterly earnings data on Tuesday, June 30th. The company reported $0.25 EPS for the quarter. The company had revenue of $1.31 billion during the quarter. Tencent Music Entertainment Group had a net margin of 26.27% and a return on equity of 11.62%. On average, research analysts forecast that Tencent Music Entertainment Group will post 0.89 EPS for the current year.

Institutional Investors Weigh In On Tencent Music Entertainment Group

Several hedge funds have recently modified their holdings of the stock. Avise Financial Cooperative Inc. purchased a new position in Tencent Music Entertainment Group in the 2nd quarter worth approximately $101,000. Working Capital Advisors UK Ltd. acquired a new stake in Tencent Music Entertainment Group in the second quarter valued at approximately $3,340,000,000. Carmignac Gestion raised its stake 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 valued at $26,740,000 after purchasing an additional 2,775,843 shares during the period. NewEdge Advisors LLC raised its stake in shares of Tencent Music Entertainment Group by 4.6% during the first quarter. NewEdge Advisors LLC now owns 66,895 shares of the company's stock valued at $621,000 after purchasing an additional 2,938 shares during the period. Finally, Bank of America Corp DE lifted its position in shares of Tencent Music Entertainment Group by 71.6% during the first quarter. Bank of America Corp DE now owns 1,825,895 shares of the company's stock worth $16,944,000 after purchasing an additional 761,787 shares in the last quarter. 24.32% of the stock is currently owned by hedge funds and other institutional investors.

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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