0213 GMT - Tencent Music Entertainment's acquisition of podcast platform Ximalaya fits well with its latest subscription initiative, Citi analysts say in a research note. TME has been working on converting subscribers to premium subscribers, which proves to be a more sustainable and resilient approach to ensure steady music subscription revenue growth. The addition of Ximalaya's long-form content to TME platform could enhance monetization potential through subscriber conversion and ads. While maintaining a buy rating on TME, Citi raises its target price to US$23.00 from US$17.00, noting the stable subscription model with improving margins profile and future upside of artists/fan-based entertainment ecosystem fits well with the growing service consumption among Chinese young consumers. Shares last ended at US$19.46. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
July 03, 2025 22:13 ET (02:13 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.