BOC International Upgrades TME Target Price

Summary

CMB International has raised the target price for Tencent Music’s H shares to HKD 93.8 and USD 23.9 for U.S. shares, maintaining a ‘buy’ rating. The forecast anticipates Tencent Music’s second-quarter revenue to grow by 12% year-over-year, with a 19% increase in the music business segment. This aligns with predictions for a 1.5 million increase in quarterly music paid users and an ARPPU of RMB 11.7. The report suggests enhanced monetization through refined operations and diversified profit channels.Zhitong

Impact Analysis

The event is classified at the company level, as the focus is on Tencent Music Entertainment Group’s financial projections and strategic adjustments. The first-order effect includes increased investor confidence due to the raised target prices and ‘buy’ rating, which could drive upward momentum in stock prices. Second-order effects may involve broader interest in the music streaming sector and potential shifts in competitive dynamics. Investment opportunities lie in purchasing Tencent Music shares, anticipating future growth as outlined by CMB International.Zhitong+ 2