[Goldman Sachs upgraded Tencent Music to "Buy" and the target price rose to HK$ 54.3]
A research report released by Goldman Sachs recently pointed out that Tencent Music (01698.HK) has performed well in the China market in the past six months, and it is expected that it will continue to maintain good development in 2024.
According to the analysis of the report, Tencent Music’s music subscription and advertising business has grown rapidly and its profit forecast has been improved. In addition, the income growth of paying users and the structural improvement of the willingness to pay for music brought by the New Year promotion activities, as well as the company’s constantly optimized monetization strategy, also provided support for the profit growth.
Based on these factors, Goldman Sachs raised the adjusted earnings per share of Tencent Music from 2024 to 2026, which were 7%, 10% and 13% respectively. At the same time, the target price was raised from HK$ 43.8 to HK$ 54.3, and the rating was upgraded from "neutral" to "buy".