---
title: "Nomura Downgrades Tencent Music Entertainment Group  to Neutral, Cuts TP to USD10"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/295917022.md"
description: "Nomura downgraded Tencent Music Entertainment Group (TME) from Buy to Neutral, cutting its target price from USD12.5 to USD10. The downgrade stems from rising concerns over competition from AI-generated music, particularly from ByteDance's Soda Music, which uses AI remix technology and low-cost strategies to attract users. This has slowed TME's revenue growth in advertising and memberships. Despite management's calls for stricter copyright protection, Nomura notes a lack of meaningful action against unauthorized AI-mixed music, predicting long-term headwinds for TME."
datetime: "2026-08-14T10:06:55.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/295917022.md)
  - [en](https://longbridge.com/en/news/295917022.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/295917022.md)
generator: "portal-rs"
---

# Nomura Downgrades Tencent Music Entertainment Group  to Neutral, Cuts TP to USD10

Nomura issued a report saying that, amid rising concerns over competition from AI-generated music, it downgraded the US stock investment rating of Tencent Music Entertainment Group (TME.US) from Buy to Neutral, while lowering the TP from USD12.5 to USD10. The broker had previously been optimistic that Tencent Music Entertainment Group (TME.US) would be able to successfully mitigate the significant challenges posed by AI music. Its main competitor, ByteDance-owned Soda Music, is leveraging AI remix technology alongside a low-monetization strategy to capture price-sensitive users, leading to slower growth in Tencent Music Entertainment Group (TME.US) 's advertising and membership revenue. Although the management of Tencent Music Entertainment Group (TME.US) has advocated strengthening copyright protection efforts with rights holders and regulators, it has yet to take meaningful or far-reaching actions to curb the proliferation of unauthorized AI-mixed music. Therefore, Nomura is increasingly concerned that, even with ByteDance's constrained music budget, Soda's AI-driven user acquisition strategy will prove more persistent than previously expected, and Tencent Music Entertainment Group (TME.US) will face long-term headwinds. (da/a)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**