Warner Music Hit By Streaming Volatility And Execution Risks: Analyst
BofA Securities analyst Jessica Reif Ehrlich downgraded Warner Music Group Corp (NASDAQ:WMG) from Neutral to Underperform and lowered the price target from $33 to $30.
The price target is approximately 12 times the calendar year 2025 OIBDA (previously 13 times the 2025 OIBDA). Given the analyst’s better long-term growth outlook, the multiple represents an approximately 25% premium to its media and entertainment coverage universe.
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Warner Music Group will continue to benefit from secular tailwinds in the music industry (like pricing and increased penetration), which should drive longer-term growth, as the analyst states.
However, given the relative disappointment in emerging platforms in the industry, volatility in ad-supported streaming, greater variability in subscription streaming than …
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