JP Morgan: Upgrades TME-SW (01698) rating to "hold" with target price raised to HKD 40.

JP Morgan released a research report stating that it has upgraded its rating on TME-SW (01698) to "overweight" and raised the target price from HKD 27 to HKD 40. The bank expects the company's recent positive business momentum to continue for the next two to three years. Based on high business visibility and strong historical performance, it is projected that Tencent Music's profits will grow at a compound annual growth rate of 20% from this year to 2025, driven by online music. The bank has also revised its adjusted earnings forecast for the stock next year, which is 20% higher than market consensus.