Tencent Music Entertainment Group Sponsored ADR (NYSE:TME) Given Average Rating of "Hold" by Analysts

Key Points

• Analyst sentiment is neutral: Fourteen analysts give Tencent Music an average “Hold” rating, with eight holds and six buys. The average 12-month price target is $21.44.
• Shares remain well below their 12-month high: TME opened at $9.51, compared with a 12-month range of $7.94 to $26.70; Mizuho and JPMorgan recently lowered their price targets to $18 and $10, respectively.
• Recent financial results were profitable: Tencent Music reported quarterly revenue of $1.15 billion and earnings of $0.11 per share, while institutional investors owned 24.32% of the company.

Shares of Tencent Music Entertainment Group Sponsored ADR (NYSE:TME - Get Free Report) have been assigned an average recommendation of "Hold" from the fourteen ratings firms that are presently covering the company, Marketbeat reports. Eight equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $21.4417.

A number of equities analysts have weighed in on the stock. Mizuho decreased their target price on shares of Tencent Music Entertainment Group from $23.00 to $18.00 and set an "outperform" rating for the company in a research note on Wednesday, May 13th. 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. Weiss Ratings raised Tencent Music Entertainment Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, July 1st. Finally, JPMorgan Chase & Co. cut 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 note on Thursday, May 14th.

Tencent Music Entertainment Group Stock Performance

Shares of TME stock opened at $9.51 on Thursday. The company's fifty day moving average price is $8.97 and its 200-day moving average price is $11.05. The stock has a market cap of $14.96 billion, a PE ratio of 11.88, a price-to-earnings-growth ratio of 0.63 and a beta of 0.84. The company has a current ratio of 2.09, a quick ratio of 2.08 and a debt-to-equity ratio of 0.06. 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 issued its quarterly earnings results on Tuesday, March 31st. The company reported $0.11 earnings per share (EPS) for the quarter. Tencent Music Entertainment Group had a net margin of 26.45% and a return on equity of 11.20%. The company had revenue of $1.15 billion during the quarter. On average, equities analysts expect that Tencent Music Entertainment Group will post 0.89 EPS for the current fiscal year.

Institutional Investors Weigh In On Tencent Music Entertainment Group

Several hedge funds have recently added to or reduced their stakes in the stock. Schroder Investment Management Group increased its holdings in shares of Tencent Music Entertainment Group by 30.0% during the fourth quarter. Schroder Investment Management Group now owns 80,480,078 shares of the company's stock valued at $1,410,816,000 after acquiring an additional 18,554,567 shares in the last quarter. Vanguard Group Inc. grew its position in Tencent Music Entertainment Group by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 21,455,738 shares of the company's stock valued at $376,119,000 after purchasing an additional 293,385 shares during the last quarter. Krane Funds Advisors LLC grew its position in Tencent Music Entertainment Group by 5.4% during the 4th quarter. Krane Funds Advisors LLC now owns 20,047,192 shares of the company's stock valued at $351,427,000 after purchasing an additional 1,026,551 shares during the last quarter. Cantillon Capital Management LLC increased its stake in Tencent Music Entertainment Group by 1.4% during the 4th quarter. Cantillon Capital Management LLC now owns 18,708,502 shares of the company's stock valued at $327,960,000 after purchasing an additional 256,286 shares in the last quarter. Finally, Overlook Investments LP bought a new stake in Tencent Music Entertainment Group during the 4th quarter valued at about $278,022,000. 24.32% of the stock is owned by institutional investors.

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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