Mizuho Issues Pessimistic Forecast for Tencent Music Entertainment Group (NYSE:TME) Stock Price

Tencent Music Entertainment Group (NYSE:TME) had its target price decreased by Mizuho from $28.00 to $23.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has an “outperform” rating on the stock. Mizuho’s target price indicates a potential upside of 102.73% from the stock’s current price.

A number of other research firms also recently issued reports on TME. Jefferies Financial Group reiterated a “buy” rating and set a $23.00 price target on shares of Tencent Music Entertainment Group in a research note on Tuesday. Benchmark restated a “hold” rating on shares of Tencent Music Entertainment Group in a report on Wednesday. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Tencent Music Entertainment Group in a research report on Monday, December 29th. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $12.00 price target on shares of Tencent Music Entertainment Group in a report on Wednesday. Finally, Morgan Stanley lowered their price target on Tencent Music Entertainment Group from $27.50 to $25.00 and set an “overweight” rating for the company in a research report on Monday, December 22nd. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $24.73.

Tencent Music Entertainment Group Trading Down 24.8%

NYSE:TME opened at $11.35 on Wednesday. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.09 and a quick ratio of 2.08. Tencent Music Entertainment Group has a one year low of $11.33 and a one year high of $26.70. The company has a market cap of $19.47 billion, a PE ratio of 11.82, a PEG ratio of 0.95 and a beta of 0.56. The firm has a 50-day moving average of $15.64 and a 200-day moving average of $19.23.

Hedge Funds Weigh In On Tencent Music Entertainment Group

Hedge funds have recently modified their holdings of the company. Smartleaf Asset Management LLC bought a new position in shares of Tencent Music Entertainment Group during the 3rd quarter worth approximately $31,000. Allworth Financial LP grew its holdings in shares of Tencent Music Entertainment Group by 63.2% in the third quarter. Allworth Financial LP now owns 1,480 shares of the company’s stock valued at $35,000 after acquiring an additional 573 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its position in shares of Tencent Music Entertainment Group by 5,777.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,057 shares of the company’s stock valued at $36,000 after acquiring an additional 2,022 shares during the last quarter. Global Retirement Partners LLC increased its position in shares of Tencent Music Entertainment Group by 1,326.5% during the third quarter. Global Retirement Partners LLC now owns 1,883 shares of the company’s stock valued at $44,000 after acquiring an additional 1,751 shares during the last quarter. Finally, Kestra Advisory Services LLC bought a new stake in Tencent Music Entertainment Group during the fourth quarter worth $46,000. Institutional investors own 24.32% of the company’s stock.

Trending Headlines about Tencent Music Entertainment Group

Here are the key news stories impacting Tencent Music Entertainment Group this week:

• Positive Sentiment: Revenue beat and strong online-music growth: Q4 revenue rose ~15.8–15.9% YoY to about $1.24B, with online-music revenue up ~21.7% (RMB7.10B), signaling durable top-line momentum in the core business. ProactiveInvestor Article
• Positive Sentiment: Large paying-user base: Tencent Music ended 2025 with ~127.4 million paying users, supporting recurring revenue and showing continued monetization of its audience. MusicAlly Article
• Neutral Sentiment: Strong margins and profitability metrics: The company reported solid net margin (~34%) and ROE (~11.1%), underscoring cash-generative operations even amid growth transitions. MarketBeat Earnings Summary
• Negative Sentiment: Material EPS miss: Reported EPS of $0.11 missed consensus (~$0.23) by a wide margin, a key driver of the negative market reaction despite the revenue beat. MarketBeat Earnings Summary
• Negative Sentiment: Guidance miss and disclosure changes spooked investors: Management flagged a guidance miss and announced a planned change in how user metrics are disclosed, creating uncertainty about user trends and future transparency—cited as a principal reason for the sharp sell-off. MarketWatch Article
• Negative Sentiment: AI-related investor fears and user-growth skepticism: Coverage and call commentary highlighted concerns that AI-driven changes in content and monetization could pressure engagement/ARPU; analyst views were mixed, amplifying volatility. Yahoo Finance Article
• Negative Sentiment: Conference call details and analyst divergence: The earnings-call transcript shows pushback and mixed analyst views on outlook, leaving guidance and execution questions unresolved. Seeking Alpha Transcript

About Tencent Music Entertainment Group

Tencent Music Entertainment Group (NYSE: TME) is a China-based digital music and audio entertainment platform that operates a portfolio of leading music streaming and social entertainment services. Its core consumer-facing products include streaming apps, online karaoke (KTV) services and live music and entertainment broadcasts. The company monetizes its content through a mix of subscriptions, digital music sales, in-app purchases, virtual gifting, advertising and licensing arrangements with rights holders.

The company traces its roots to the consolidation of Tencent’s music assets and was established in the mid-2010s to unify several prominent music properties under a single operating entity.