Jefferies raises Tencent Music Entertainment Group stock price target to $28

Published 12/08/2025, 16:36
Jefferies raises Tencent Music Entertainment Group stock price target to $28

Investing.com - Jefferies raised its price target on Tencent Music Entertainment Group (NYSE:TME) to $28.00 from $26.00 while maintaining a Buy rating following the company’s second-quarter results. The stock, currently trading near its 52-week high of $22.98, has delivered impressive returns with a 102% gain year-to-date.

The Chinese music streaming platform reported quarterly revenue and non-IFRS earnings that exceeded both consensus estimates and Jefferies’ projections. According to InvestingPro data, TME maintains strong financial health with a "GREAT" overall score, supported by revenue growth of 5.35% and robust cash flows.

During the earnings call, Tencent (HK:0700) Music’s management emphasized strengthening integrated music offerings and highlighted potential growth in the fans economy and offline concerts segment.

Jefferies noted that the company’s Bubble feature has been well received by users, while SVIP subscriber penetration continues to rise across the platform.

The research firm also pointed to solid growth in Tencent Music’s advertising business and revised its revenue and non-IFRS earnings estimates upward based on an improved outlook for the company.

In other recent news, Tencent Music Entertainment Group is set to announce its second quarter 2025 financial results on August 12, 2025, covering the period ending June 30, 2025. Multiple investment firms have updated their outlook on Tencent Music, reflecting optimism about the company’s growth potential. Goldman Sachs raised its price target for the company to $21.00, citing expected growth in average revenue per user (ARPU), particularly from its Super VIP subscription tier. Macquarie also increased its price target to $26.20, highlighting Tencent Music’s transformation into a more comprehensive music service, which could improve pricing power and monetization opportunities. Morgan Stanley (NYSE:MS) adjusted its price target to $18.00, maintaining an Overweight rating based on revenue forecasts. Additionally, Bernstein SocGen Group raised its price target to $20, emphasizing the strategic partnership with SM Entertainment as a key factor. These developments suggest a positive outlook from analysts regarding Tencent Music’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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