06:10 AM EDT, 03/21/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Following TME's earnings beat in 2024, we raise our 2025 earnings per ADS (EPADS) estimate to CNY5.35 (from CNY4.66) and initiate 2026's EPADS forecast at CNY6.25. Our 12-month target price is raised to USD17 (from USD15), at an implied P/E multiple of 23x our projected 2025 EPADS, and a slight premium to its five-year average of 21.5x. In our view, TME has successfully repositioned itself as a premium, subscription-driven platform in China's evolving music industry. We believe TME's strategic focus on growing its paying subscriber base and enhancing ad monetization will drive sustained revenue and margin expansion in 2025. We project TME's EBITDA margin to expand from 29% in 2024 to 33.1% in 2025, reflecting a favorable revenue mix shift toward high-margin subscriptions and advertising. With strong operating cash flow generation and a CNY21.2 billion net cash position, we believe TME can comfortably fund growth initiatives while maintaining robust shareholder returns.