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Investing.com - Benchmark raised its price target on Tencent Music Entertainment Group (NYSE:TME) to $28.00 from $19.00 on Wednesday, while maintaining a Buy rating on the stock. The company, now valued at over $41 billion, has seen its shares surge 126% year-to-date, trading near its 52-week high of $25.98.
The price target increase follows TME’s second-quarter 2025 results, which showed strong performance primarily driven by 46% year-over-year growth in non-subscription music revenues.
Benchmark identified two structural shifts influencing TME’s outlook: rising entertainment spending in China and the company’s ability to leverage this trend through product and technology innovation.
The research firm noted TME is evolving into a comprehensive music and entertainment platform with a scalable, multi-vertical ecosystem, supported by ongoing investments in AI, content library, premium SVIP features, collectible fandom, concert production, and cross-media integration.
Benchmark’s higher price target reflects upward revisions to fiscal year 2025 and 2026 growth projections, driven by the strong quarterly results, earnings upgrades, and multiple expansion.
In other recent news, Tencent Music Entertainment Group has seen multiple analyst firms raise their price targets following the company’s second-quarter results. Jefferies increased its price target to $28, maintaining a Buy rating, after Tencent Music reported quarterly revenue and non-IFRS earnings that surpassed both consensus estimates and Jefferies’ own projections. Mizuho also raised its price target to $28 from $17, citing a "strong beat" in the second quarter and emphasizing the company’s focus on average revenue per user (ARPU) growth. Similarly, Bernstein SocGen Group adjusted its price target to $27.50, highlighting Tencent Music’s strengthening music ecosystem and ongoing product development.
Goldman Sachs raised its target to $21, reflecting optimism about ARPU growth, particularly from the Super VIP subscription tier, with forecasts of 10% growth for 2025. These developments come as Tencent Music prepares to announce its second-quarter 2025 financial results on August 12. This series of analyst upgrades underscores the positive sentiment surrounding Tencent Music’s financial performance and growth potential.
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