11:46 AM EDT, 05/13/2024 (MT Newswires) -- Tencent Music Entertainment Group's ( TME ) music subscribers are expected to double from around 100 million in 2023 to 200 million by 2030, helping it triple its music revenue from 17 billion Chinese renminbi ($2.35 billion) last year to 52 billion renminbi in 2030, Morgan Stanley said in a note e-mailed Monday.

The brokerage increased its price target on the Tencent Music stock to $19 from $13.50, with an overweight rating.

"Our bull thesis appears to be gaining traction, which should re-rate the stock further, driven by TME's strengthening moat and execution on the still-underpenetrated [total addressable market], with limited risks from macro, competition and regulation," Morgan Stanley said.

Other drivers seen contributing to the projected revenue increase are the company's more effective use of a paywall to drive growth in subscribers, and its ability to maintain users while narrowing discounts and subscription tiers.

The company's shares were up past 11% in recent trading.

Price: 14.84, Change: +1.50, Percent Change: +11.24