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Investing.com - Macquarie maintained its Outperform rating on Tencent Music Entertainment Group (NYSE:TME) while lowering its price target to $28.30 from $29.80.
The research firm cited the company’s "solid" third-quarter 2025 performance, which reinforced its positive outlook on the company’s music business momentum. Non-subscription music revenue exceeded both Macquarie’s expectations and broader market consensus.
Macquarie noted that Tencent Music’s paying users and monthly average revenue per paying user (ARPPU) both expanded steadily, attributed to stable growth in the company’s SVIP program.
The firm highlighted that Tencent Music is developing a growing variety of revenue streams, which is creating new monetization opportunities for the company. However, these opportunities require near-term investments, which likely influenced the price target reduction.
Despite lowering the price target, Macquarie maintained its Outperform rating and designated Tencent Music as a "Marquee Buy" in its coverage universe.
In other recent news, Tencent Music Entertainment Group reported its third-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share of $1.54, which was higher than the forecasted $1.52. Additionally, Tencent Music’s revenue reached $8.46 billion, exceeding the anticipated $8.23 billion. These financial results have been a significant highlight for investors. The earnings announcement reflected positively on the company’s recent performance. Analyst firms noted the company’s ability to exceed expectations in both earnings and revenue. These developments have been pivotal in shaping investor sentiment around Tencent Music.
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