Warner Music Group (WMG) PT Raised to $42 at Guggenheim

Guggenheim analyst Michael Morris raised the price target on Warner Music Group (NASDAQ: WMG) to $42.00 (from $36.00) while maintaining a Buy rating.

The analyst commented, "Key Message: WMG results and key messaging support our positive long-term view based on 1) unique intellectual property control, 2) leadership position in new content sourcing and 3) increasing exposure to secular growth businesses. F1Q21 streaming revenue growth was modestly ahead of our estimate, with broad-based contribution across subscription, advertising and emerging platforms. Artist services revenue of $180mm was well ahead of our $142mm estimate (consensus $123mm) as direct-to-consumer revenue via EMP expanded meaningfully. Looking forward, we expect progress at cyclically sensitive businesses (live performance, advertising) to improve while businesses that benefited from stay-at-home (virtual events, e-commerce) maintain their secular support. We are raising our 12-month price target to $42 from $36."

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