Warner Music Group Faces Distribution Shift - Analysts Are Bullish On Long-Term Growth Prospects
Portfolio Pulse from Anusuya Lahiri
Warner Music Group (WMG) shares declined following Bertelsmann's decision to end its music distribution agreement with WMG's subsidiary, Alternative Distribution Alliance (ADA). Despite this, J.P. Morgan analyst Sebastiano Petti reiterated an Overweight rating on WMG with a price target of $40, and Truist analyst Matthew Thornton reiterated a Buy rating with a price target of $37. Both analysts are bullish on WMG's long-term growth prospects, citing factors such as paid streaming adoption, streaming price increases, and improved Emerging Streaming Platform monetization.
September 21, 2023 | 8:31 pm
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Warner Music Group's shares declined following Bertelsmann's decision to end its distribution agreement with WMG's subsidiary. However, analysts from J.P. Morgan and Truist remain bullish on WMG's long-term growth prospects.
The termination of the distribution agreement with Bertelsmann initially led to a decline in WMG's shares. However, the bullish ratings from J.P. Morgan and Truist analysts, who believe in WMG's long-term growth prospects, could potentially drive the stock price up in the short term.
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