Analyst Jessica Reif Ehrlich of Bank of America Securities reiterated a Hold rating on Warner Music Group, boosting the price target to $36.00.
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Jessica Reif Ehrlich’s rating is based on several factors influencing Warner Music Group’s current and future performance. The recent deal renewals with digital service providers have increased visibility in subscription streaming growth, which has positively impacted the company’s stock performance. However, despite this progress, there are still uncertainties surrounding new product launches, such as the ‘SuperPremium’ tier, particularly regarding its features, timing, and economic implications.
Furthermore, while there is a favorable setup heading into FY26 with improved predictability in revenue drivers and multi-year margin improvement, the ad-supported streaming outlook remains mixed due to known headwinds in audio streaming advertising. These elements contribute to a balanced risk/reward scenario at current levels, leading to the reiteration of a Neutral rating with a slight increase in the price objective to $36. This reflects a cautious optimism about Warner Music Group’s ability to achieve high single-digit subscription streaming revenue growth and potential acceleration in ad-supported growth.