Morgan Stanley analyst Benjamin Swinburne has reiterated their bullish stance on WMG stock, giving a Buy rating yesterday.
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Benjamin Swinburne’s rating is based on several factors that highlight Warner Music Group’s potential for long-term growth despite recent challenges. The agreement with Spotify is a crucial element, as it alleviates concerns about music’s role in the future of streaming, ensuring that music labels like WMG are poised to benefit from the ongoing expansion of streaming services. This is further supported by the belief that WMG and other major music labels are strategically positioned to capitalize on global music consumption and monetization trends.
Swinburne acknowledges that WMG’s recent streaming growth figures fell short of expectations, raising some concerns about the pace of industry growth. However, the overall outlook remains positive due to WMG’s discounted valuation, which suggests potential for future stock appreciation. Despite the current slowdown, the firm’s strategic moves and position in the industry offer a compelling opportunity for investors, justifying the Buy rating.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $41.00 price target.
Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WMG in relation to earlier this year.