UBS Starts Warner Music Group (WMG) at Neutral, 'Music on Hold'

UBS analyst Batya Levi initiates coverage on Warner Music Group (NASDAQ: WMG) with a Neutral rating and a price target of $29.00.

The analyst comments "We are initiating coverage of WMG with a Neutral rating and a $29 PT. We see WMG as a LT beneficiary of secular trends in the music industry (inc. the adoption of streaming/emerging platforms driving DD revenue growth; a predictable business model supported by global IP) and improving operating leverage. That said, WMG's revenue growth has recently been below industry levels due to a delayed release slate and a choppy advertising market. The impact of AI has also weighed on the group, a risk we expect the industry to manage through but remain an overhang for now. Despite our expectations for gradual improvement in trends (and overall growth for the industry), we believe AI risks/uncertainty will limit multiple expansion in the NT and see a balanced risk reward."

For an analyst ratings summary and ratings history on Warner Music Group click here. For more ratings news on Warner Music Group click here.

Shares of Warner Music Group closed at $26.67 yesterday.

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