Tencent Music Entertainment Group (NYSE:TME) Downgraded to “Hold” Rating by China Renaissance

Tencent Music Entertainment Group (NYSE:TME) was downgraded by stock analysts at China Renaissance from a “buy” rating to a “hold” rating in a report issued on Wednesday, MarketBeat.com reports. They presently have a $9.30 target price on the stock. China Renaissance’s target price indicates a potential upside of 6.71% from the company’s current price.

A number of other equities research analysts have also recently weighed in on TME. Mizuho dropped their price objective on Tencent Music Entertainment Group from $23.00 to $18.00 and set an “outperform” rating for the company in a research note on Wednesday, May 13th. 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. JPMorgan Chase & Co. decreased their target price on Tencent Music Entertainment Group from $12.00 to $10.00 and set a “neutral” rating for the company in a report on Thursday, May 14th. Finally, Zacks Research upgraded Tencent Music Entertainment Group from a “strong sell” rating to a “hold” rating in a research note on Tuesday, May 19th. Four equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $18.89.

Tencent Music Entertainment Group Stock Performance

NYSE TME opened at $8.71 on Wednesday. The stock has a market cap of $13.72 billion, a PE ratio of 10.89, a P/E/G ratio of 1.49 and a beta of 0.84. Tencent Music Entertainment Group has a twelve month low of $7.94 and a twelve month high of $26.70. The stock has a fifty day simple moving average of $8.98 and a 200-day simple moving average of $10.86. The company has a current ratio of 2.09, a quick ratio of 2.08 and a debt-to-equity ratio of 0.06.

Tencent Music Entertainment Group (NYSE:TME) last announced its earnings results on Tuesday, June 30th. The company reported $0.25 earnings per share for the quarter. Tencent Music Entertainment Group had a net margin of 26.45% and a return on equity of 11.20%. The company had revenue of $1.31 billion during the quarter. Equities analysts anticipate that Tencent Music Entertainment Group will post 0.89 earnings per share for the current year.

Institutional Investors Weigh In On Tencent Music Entertainment Group

A number of institutional investors and hedge funds have recently bought and sold shares of TME. Avise Financial Cooperative Inc. acquired a new stake in shares of Tencent Music Entertainment Group during the second quarter worth about $101,000. Working Capital Advisors UK Ltd. purchased a new position in Tencent Music Entertainment Group during the second quarter worth $3,340,000,000. Carmignac Gestion lifted its position in shares of Tencent Music Entertainment Group by 2,635.9% in the first quarter. Carmignac Gestion now owns 2,881,153 shares of the company’s stock valued at $26,740,000 after acquiring an additional 2,775,843 shares in the last quarter. NewEdge Advisors LLC increased its position in Tencent Music Entertainment Group by 4.6% during the 1st quarter. NewEdge Advisors LLC now owns 66,895 shares of the company’s stock worth $621,000 after purchasing an additional 2,938 shares in the last quarter. Finally, Bank of America Corp DE lifted its holdings in Tencent Music Entertainment Group by 71.6% in the 1st quarter. Bank of America Corp DE now owns 1,825,895 shares of the company’s stock valued at $16,944,000 after purchasing an additional 761,787 shares in the last quarter. 24.32% of the stock is owned by hedge funds and other institutional investors.

Key Tencent Music Entertainment Group News

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

• Positive Sentiment: Revenue exceeded expectations and increased year over year. TME reported second-quarter revenue of RMB8.93 billion (approximately $1.32 billion), up 5.8% from a year earlier. Growth was driven primarily by music-related services, including subscription revenue and concert-related activity. Tencent Music second-quarter 2026 financial results
• Positive Sentiment: Subscription momentum and the Ximalaya acquisition support the platform’s expansion. Management highlighted continued growth in music subscriptions and the integration of Ximalaya, which is intended to broaden TME from a music-focused service into a combined music-and-audio entertainment platform. Tencent Music Q2 revenue and Ximalaya integration
• Positive Sentiment: Another share-buyback round could support the stock. TME signaled additional repurchases while integrating Ximalaya, potentially returning capital to shareholders and offsetting dilution. TME buyback and Ximalaya integration
• Neutral Sentiment: The earnings release produced mixed market reaction. Coverage reported a substantial earnings-per-share beat, while revenue was close to the consensus forecast. Investors are focusing on management’s comments regarding subscription trends, concerts, and the pace and costs of integrating Ximalaya. TME Q2 2026 earnings call transcript
• Negative Sentiment: Investors may view the 5.8% revenue growth rate as modest. Despite the reported earnings beat, shares slid after the results, suggesting that the market was looking for stronger growth or clearer evidence that the Ximalaya integration will accelerate results. Tencent Music shares after Q2 results

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.