Mizuho Has Lowered Expectations for Tencent Music Entertainment Group (NYSE:TME) Stock Price

Tencent Music Entertainment Group (NYSE:TME) had its target price cut by Mizuho from $18.00 to $15.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has an “outperform” rating on the stock. Mizuho’s target price indicates a potential upside of 78.47% from the stock’s previous close.

A number of other research firms have also recently commented on TME. UBS Group set a $15.00 target price on Tencent Music Entertainment Group in a research note on Wednesday. Weiss Ratings raised shares of Tencent Music Entertainment Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 1st. China Renaissance cut shares of Tencent Music Entertainment Group from a “buy” rating to a “hold” rating and set a $9.30 target price for the company. in a report on Wednesday. JPMorgan Chase & Co. cut their target price on Tencent Music Entertainment Group from $12.00 to $10.00 and set a “neutral” rating on the stock in a research note on Thursday, May 14th. Finally, Zacks Research raised Tencent Music Entertainment Group from a “strong sell” rating to a “hold” rating in a report on Tuesday, May 19th. Four equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, Tencent Music Entertainment Group has a consensus rating of “Hold” and a consensus target price of $18.80.

Tencent Music Entertainment Group Trading Down 3.6%

Shares of TME traded down $0.32 during mid-day trading on Wednesday, hitting $8.40. 3,551,614 shares of the company’s stock traded hands, compared to its average volume of 9,214,547. The company has a quick ratio of 2.08, a current ratio of 2.09 and a debt-to-equity ratio of 0.06. The business’s 50-day moving average price is $8.98 and its 200-day moving average price is $10.86. The firm has a market capitalization of $13.23 billion, a P/E ratio of 10.49, a PEG ratio of 1.49 and a beta of 0.84. Tencent Music Entertainment Group has a 1 year low of $7.94 and a 1 year high of $26.70.

Tencent Music Entertainment Group (NYSE:TME) last released its earnings results on Tuesday, June 30th. The company reported $0.25 EPS for the quarter. Tencent Music Entertainment Group had a return on equity of 11.20% and a net margin of 26.45%.The company had revenue of $1.31 billion during the quarter. As a group, sell-side analysts forecast that Tencent Music Entertainment Group will post 0.89 EPS for the current fiscal year.

Institutional Trading of Tencent Music Entertainment Group

Several hedge funds have recently bought and sold shares of the stock. Allworth Financial LP increased its stake in Tencent Music Entertainment Group by 63.2% in the 3rd quarter. Allworth Financial LP now owns 1,480 shares of the company’s stock worth $35,000 after acquiring an additional 573 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its stake in shares of Tencent Music Entertainment Group by 5,777.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 2,057 shares of the company’s stock worth $36,000 after buying an additional 2,022 shares in the last quarter. Smartleaf Asset Management LLC increased its holdings in shares of Tencent Music Entertainment Group by 61.3% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,123 shares of the company’s stock worth $37,000 after buying an additional 807 shares during the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of Tencent Music Entertainment Group during the 4th quarter valued at about $46,000. Finally, EverSource Wealth Advisors LLC raised its position in Tencent Music Entertainment Group by 83.0% during the second quarter. EverSource Wealth Advisors LLC now owns 3,005 shares of the company’s stock valued at $59,000 after purchasing an additional 1,363 shares during the period. Hedge funds and other institutional investors own 24.32% of the company’s stock.

Key Stories Impacting Tencent Music Entertainment Group

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

• Positive Sentiment: Solid Q2 revenue and subscription momentum: TME reported second-quarter revenue of RMB8.93 billion ($1.32 billion), up 5.8% year over year. Growth was driven primarily by music-related services, including subscriptions, concert activity and the integration of Ximalaya. Tencent Music second-quarter 2026 financial results
• Positive Sentiment: Potential additional share buyback: Management signaled another round of repurchases while combining Ximalaya with TME’s music-plus-audio platform. Buybacks could support per-share earnings and signal confidence in the company’s valuation. TME signals another share buyback round
• Neutral Sentiment: Integration remains an execution focus: Ximalaya expands TME beyond music into broader audio entertainment, but investors will look for evidence that the acquisition produces meaningful synergies and sustained revenue growth.
• Negative Sentiment: Shares declined despite the earnings beat: Coverage indicated that the market reacted negatively to the results, likely reflecting concern that 5.8% revenue growth was modest relative to expectations or that future growth may not justify the stock’s prior valuation. Tencent Music shares slide after Q2 results
• Negative Sentiment: Analyst downgrade limits near-term optimism: China Renaissance lowered TME from “Buy” to “Hold” and set a $9.30 price target, implying only about 6.7% upside from the cited $8.71 level. The move may weigh on sentiment by signaling limited near-term appreciation potential. TME analyst rating information

Tencent Music Entertainment Group Company Profile

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.