02:10 AM EDT, 03/20/2024 (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 in-line 2023 results, we keep our 2024 earnings per ADS forecast unchanged at CNY3.60, and we start 2025's at CNY4.36. Our 12-month target price is raised to USD13 (from USD9), at 26x our 2024 forecast, only a slight premium vs. its five-year average of 24x. We see support from continued strong growth for subscription revenue for Online Music Services (OMS) in 2024, offsetting weakness at the Social Entertainment Services (SES) and leading TME to post low-single-digit revenue growth in 2024, its first year of growth since 2021. Operating margin growth should slow vs. 2023 as easy cost wins should have played out, but TME's continuing ADS buyback (USD500 mln, 65% balance) provides bottomline support. In 2023, revenue -2%, on weakness for the SES segment. OMS revenue +39% (62% of group revenue) from higher paying users and ARPPU from subscriptions. Gross margin +4.3%pt to 35.3%, its highest level since 2018, on lower revenue sharing fees for SES, offset by higher content costs for OMS.