Tencent Music price target raised to $11.20 from $8.60 at Goldman Sachs

Goldman Sachs analyst Lincoln Kong raised the firm’s price target on Tencent Music to $11.20 from $8.60 and keeps a Neutral rating on the shares. The analyst says 2023 brought a meaningful valuation de-rating across the China games and entertainment space despite most companies delivering 10%-60% upward earnings revisions. Going into 2024 the firm prefers Kuaishou, Tencent and NetEase as top picks in the sector, expecting stabilized valuation multiples with performance to be driven by earnings compounding.