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Tencent Music Entertainment Gro (TME) Stock Analysis

HoldModerate Confidence

Communication Services · Internet Content & Information

Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover, enjoy, and... Read more

$9.75+61.6% upside
Score 6.2/10Target $15.72Reward/Risk 12.3:1

TrendMatrix rates Tencent Music Entertainment Gro (TME) as Hold with moderate confidence. The stock trades at $9.75 with +61.6% upside to the $15.72 price target. Overall score: 6.2/10 across 10 analysis dimensions. Reward/risk ratio: 12.3:1.

Passes 3/5 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.

Val9.1Qual6.8Grw5.7Mom1.7Sent7.5Ins5.0Peer6.4Tech6.2Risk5.16.2OVERALL

Investment Thesis

+ Sector modifier (): +1.2
+ Strong earnings beat streak (4/4)
+ Attractive valuation
- Leverage penalty (D/E 4.6): -1.5
- Negative momentum
- Below 200-day MA

Fundamentals

P/E (TTM)9.6
P/E (Fwd)9.3
Mkt Cap$16.6B
EV/EBITDA1.0
Profit Mgn33.6%
ROE14.9%
Rev Growth15.9%
Beta0.61
Dividend2.41%
Analysts35
Frequently Asked Questions
Is TME stock a buy right now?

TrendMatrix rates Tencent Music Entertainment Gro (TME) as Hold with moderate confidence. Score 6.2/10.

What is the TME stock price target?

Take-profit target: $15.72 (+61.6% upside). Reward/risk ratio: 12.3:1. Stop-loss: $9.24.

What are the risks of investing in TME?

Leverage penalty (D/E 4.6): -1.5; Negative momentum; Below 200-day MA.

Is TME overvalued or undervalued?

Tencent Music Entertainment Gro trades at a P/E of 9.6 (forward 9.3). TrendMatrix value score: 9.1/10. Verdict: Hold.

What do analysts say about TME?

35 analysts cover TME with a consensus score of 4.1/5. Average price target: $18.

What does Tencent Music Entertainment Gro do?Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online...

Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover, enjoy, and share music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with audience base; and Lazy Audio, an audio platform. In addition, it sells artist-related merchandise, such as branded apparel, posters and art prints, and accessories; other music services, such as content licensing, sales of digital albums, sales of customized artist-related merchandises, live performances and concerts, and artist management services; and music subscriptions, as well as offers advertising services across its social entertainment platforms. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.

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27 OVERSOLD
<20d<50d<200dDEATH CROSSSupp $9.53Res $15.46

Price Targets

$9
$16
Upside+61.6%
Reward/Risk12.3:1

Position Sizing

ConvictionNONE
Suggested %0.5%
Max %1%
RegimeRISK_OFF

Risk Alerts

! MOMENTUM:1.7<5.0
! DEATH_CROSS:HARD_BLOCK
FALLING KNIFESuitability: Moderate
Risk/Reward 12.3>=2.0
Insider activity: OK
No SEC red flags
Momentum 1.7<5.0
Death cross (50MA < 200MA)