Analyst Christophe Cherblanc of Bernstein reiterated a Buy rating on Warner Music Group, with a price target of $38.00.
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Christophe Cherblanc has given his Buy rating due to a combination of factors that highlight Warner Music Group’s strategic positioning and growth potential. The company is seen as a beneficiary of the AI revolution, with potential margin improvements from AI licensing, which are expected to enhance operating leverage by 2026. This is complemented by favorable trends in subscription streaming, which remains a core growth driver, and the emergence of alternative streaming avenues.
Additionally, Warner Music Group is showing signs of a shift towards higher quality growth in both recorded music and publishing. The company’s management has set ambitious medium-term margin targets, supported by strategic pricing, selective A&R investments, and a robust catalog engine. The introduction of new regional leadership and a global deals office is also contributing to more disciplined portfolio management and improved cash conversion. These factors, alongside a clearer cash and capex framework, position Warner Music Group to capture more value in the evolving digital landscape.
Cherblanc covers the Services sector, focusing on stocks such as Wolters Kluwer N.V., CTS Eventim AG & Co. KGaA, and ProSiebenSat.1 Media SE. According to TipRanks, Cherblanc has an average return of 2.5% and a 49.48% success rate on recommended stocks.
In another report released on November 21, Jefferies also maintained a Buy rating on the stock with a $38.00 price target.