It’s been a stormy season for tech stocks, but there are fresh signs Tencent Music Entertainment is riding it out.
Less than six weeks after Tencent’s belated flotation on the New York Stock Exchange, JPMorgan has endorsed the Chinese streaming giant by upgrading its stock from “hold” to “buy.”
It’s more like a “full-throated yell” of support for Tencent Music, notes the Motley Fool, which notes JPMorgan, along with Merrill Lynch, Credit Suisse and others, acted as underwriters for the IPO on Dec. 12, but gave no rating at all at the time.
In the quiet, post-Christmas trading period, Stifel, Morgan Stanley, and Deutsche Bank, which also helped to underwrite the IPO, gave “hold” ratings, while Goldman Sachs and KeyBanc upgraded Tencent Music to a “buy”.
Analysts are apparently warming to Tencent Music, which operates the popular services QQ Music, Kugou, Kuwo and WeSing. Its “China-unique revenue model” will help it to expand in the world’s most populous market, enthuses JPMorgan’s Alex Yao in a note shared on TheFly.com. He also sees “sizable” long-term growth potential for Tencent Music, which he dubs the “largest online music streaming operator globally.”