Tencent Music Entertainment Group (TME) saw its stock soar 5.02% in pre-market trading on Tuesday, buoyed by positive analyst coverage and broader support for Chinese stocks. The surge comes as investors react to new analyst ratings and China's efforts to stabilize its financial markets.
Nomura initiated coverage on Tencent Music with a Buy rating and a price target of $17.20, signaling strong confidence in the company's prospects. According to FactSet, the consensus among analysts is a Buy rating with a mean price target of $16.38, suggesting potential upside for the stock.
Adding to the positive sentiment, China's central bank announced its support for state-backed funds buying local stocks to stabilize the market. The People's Bank of China stated it would provide funding aid to Central Huijin Investment Ltd. when necessary, aiming to safeguard capital market stability. This move has led to a broader rally in Chinese ADRs and ETFs, with many seeing significant gains in overnight trading.
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