01:50 PM EST, 11/12/2025 (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:

We lower our target price by USD4 to USD21, applying a narrower equity risk premium and a forward P/E at 21.4x compared to the three-year historic average at 24.7x. We are conservative on valuation given our more cautious view on member growth from such a large paid user base. Nonetheless, we increase our 2025 EPS estimate by $0.20 to $6.15 and 2026's by USD0.16 to USD7.00 on respective revenue projections of RMB32.4B and RMB36.2B. Our estimates are near the consensus estimates. TME share price is lower today on weaker member average use (MAUs) for online music, down 4.3% Y/Y, while paying users for online music was up 5.6% Y/Y to 125.7M and monthly average revenue per paid user (ARPPU) up 10.2% to RMB11.90. TME is ahead of peers in leveraging AI to further localize features and functions leading to improved user retention including in-app translation and speak-to-text capabilities. We like that advertising is showing solid growth from an innovative ad-supported model.