The analysts' conversations with TME management revealed expectations that music subscribers will grow by more than 3 million a quarter, to an estimated 150 million in the medium term. "We see room for [TME] music revenue to double and profit to triple in the next three years," the Morgan Stanley analysts wrote, noting "limited risks from macro and competition." They raised their price target on TME 10% to $11, implying more than 30% upside from Friday's close in Tencent Music Entertainment's American Depositary Receipts. TME's ADRs are up only 2% for the year so far, while rival Spotify shares have surged almost 130%. Now Spotify has a market capitalization about 150% more than Tencent Music Entertainment's. TME SPOT YTD mountain Tencent Music Entertainment vs Spotify in 2023. Spotify isn't available in China, a market notorious for content piracy. But in the past few years, companies have become more vigilant in protecting intellectual property, while consumers are getting in the habit of paying.