Update shared on19 Aug 2025
Fair value Increased 7.47%Tencent Music Entertainment Group’s analyst price target was raised to $28.14 following a strong Q2 beat, accelerating revenue growth, and robust monetization across its music ecosystem, reflecting increased confidence in its outlook.
Analyst Commentary
- Bullish analysts cited a clean Q2 beat across all key metrics, with online music revenue growing 26% and significant improvement in average revenue per user.
- Upward revisions to FY25 revenue growth forecasts (e.g., from 10% to 14%) followed Q2 results that exceeded expectations.
- Strong performance in music subscription and other revenue streams outpaced analyst forecasts, supporting positive momentum.
- Growth in monthly average revenue per paying user, driven by higher Super VIP adoption rates and an expanded content library, was highlighted as a key factor.
- Analysts underscored Tencent Music's unique ability to monetize the complete user music experience—covering online listening, offline concerts, and fan services—with no comparable competitors, resulting in record SVIP member growth and an “all-around perfect” quarter.
What's in the News
- Board meeting scheduled to consider and approve unaudited results for the three and six months ended June 30, 2025.
Valuation Changes
Summary of Valuation Changes for Tencent Music Entertainment Group
- The Consensus Analyst Price Target has risen from $26.18 to $28.14.
- The Future P/E for Tencent Music Entertainment Group has significantly fallen from 28.07x to 4.04x.
- The Consensus Revenue Growth forecasts for Tencent Music Entertainment Group has significantly risen from 13.3% per annum to 14.8% per annum.
Disclaimer
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