UPDATE: Warner Music Group (WMG) PT Raised to $53 at BofA Securities Highlighting 5 Key Growth Drivers

October 13, 2021 5:44 AM EDT
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Price: $48.09 --0%

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    9 Buy, 10 Hold, 1 Sell

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    Up: 5 | Down: 10 | New: 26
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(Updated - October 13, 2021 8:28 AM EDT)

BofA Securities analyst Jessica Reif Ehrlich raised the price target on Warner Music Group (NASDAQ: WMG) to $53.00 (from $48.00) while maintaining a Buy rating on the belief that F4Q21E results will reflect strong digital streaming performance partially offset by lingering COVID-related headwinds. Looking ahead into the call, the analyst highlighted 5 key growth drivers.

She stated "We remain bullish on WMG as the growth in digital streaming—aided by new emerging platforms—should be sustainable over the next few years given continued penetration across the globe, favorable pricing dynamics and new emerging use cases for music (e.g. gaming, fitness, social). We believe the key growth drivers in the Q include: (1) new platform launches/operations in emerging markets, (2) price increases by SPOT in 44 markets since October 2020 (incl. U.S., U.K. and 10 other markets in April), (3) new music releases, (4) continued transition of physical sales to digital (including major physical markets such as Japan, Germany and France) and (5) new deal activity with emerging platforms now representing >$235M in annual rev. up (~$300mn in annual revenue if we include publishing) from $100mn a year ago."

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