07:15 AM EDT, 05/15/2025 (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 strong Q1 2025, we lift our earnings per ADS forecast for 2025 to CNY5.55 (from CNY5.35). We also raise our 12-month target price to USD18 (from USD17), reflecting the stronger-than-expected Q1 2025 performance and improved earnings visibility. Our new 12-month target price implies a forward P/E of 23.4x, a modest premium to TME's historical average, which we believe is warranted given its margin uplift, consistent capital returns, and structural revenue mix shift toward higher-margin segments. While TME's dual-engine strategy of content and platform innovation remains intact, we now view valuation as reflecting the medium-term earnings potential, and see further upside as contingent on the scale-up of monetization levers such as advertising and international expansion.