Tencent Music Entertainment Group (TME) is a Buy at BNP Exane Paribas on Online Music Services Growth

Tencent Music Entertainment Group (NYSE:TME) is a must-buy non-tech stock to invest in. On November 13, BNP Exane Paribas touted the company’s third-quarter results, which showed significant improvement as it benefits from continued innovations in content enrichment and service expansion.

Revenue in the quarter was up 20.6% year over year to $1.19 billion, driven by growth in online music services. Additionally, the company benefited from the Value-Added Services (VAS) segment, which grew 16%, as domestic gaming rose 15% and international gaming surged 42%. The company delivered earnings per share of $0.19. According to the research firm, the solid third-quarter results affirm the long-term investment case for Tencent Music Entertainment.

Likewise, on November 13, Benchmark reiterated that Tencent Music Entertainment is a Buy but cut the price target to $25 from $28. The price target cut comes amid concerns that the rapid expansion of offline events is negatively impacting gross margins, creating pressure on profitability. Nevertheless, the company posted a 50% increase in non-subscription music revenue driven by strong performance in concerts and merchandise.

Tencent Music Entertainment Group (NYSE:TME) is a leading online music and audio entertainment platform that provides music streaming, online karaoke, and live streaming services. It also offers a comprehensive music library and hosts online concerts.

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Disclosure: None. This article is originally published at Insider Monkey.