2023-04-24 09:11:17 ET
Tencent Music ( NYSE: TME ) shares edged into the red in pre-market trading Monday as Mizuho Securities analyst Wei Fang started covered of the Chinese online music services company with a buy rating.
Fang said Tencent Music ( TME ) is in a position for "high monetization" due to having what he called "the largest only music ecosystem in China" with 567M monthly active users. Fang said that other factors in Tencent Music's ( TME ) favor are more music labels putting their content behind paywalls and a "rationalization" in market competition.
Fang said the that the long-term total addressable market for Tencent Music ( TME ) is set to nearly double from $7.4B to $14.5B over the next 10 years. During that period, Fang said Tencent Music ( TME ) is set to transform "from a premium music subscription services platform to an all-things ecosystem" that's investing in areas such as indie music and longer-form listening offerings such as audio books and podcasts.
Fang also set at $10-a-share price target on Tecent Music's ( TME ) stock.
Tencent Music ( TME ) is majority-owned by Chinese communications services giant Tencent Holdings ( OTCPK:TCEHY ).
Wall Street analysts currently have a buy rating on Tencent Music's ( TME ) stock, while Seeking Alpha contributors give the stock a hold rating. Seeking Alpha's Quant System, which historically outperforms the stock market, gives Tencent Music shares a strong buy rating.
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Tencent Music shares get new buy rating from Mizuho