Doug Creutz, an analyst from TD Cowen, reiterated the Buy rating on Warner Music Group (WMG – Research Report). The associated price target remains the same with $41.00.
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Doug Creutz’s rating is based on Warner Music Group’s overall performance and growth prospects. Despite certain challenges, such as foreign exchange headwinds impacting margins and a slowdown in streaming growth, the company has demonstrated resilience in its financial results. Warner Music Group’s recorded music revenue slightly exceeded estimates and showed a positive trend when accounting for one-time items, reflecting continued strength in its core business.
Additionally, the music publishing segment exhibited growth, with streaming revenue increasing, although it faced some pressure from lower digital and mechanical revenues. The company’s strategic pricing adjustments and strong releases in key markets like the U.S. and Japan have contributed to its favorable outlook. Given these factors, Doug Creutz has confidence in Warner Music Group’s potential for future growth, justifying a Buy rating.