Warner Music Hit By Streaming Volatility And Execution Risks: Analyst
Portfolio Pulse from Anusuya Lahiri
BofA Securities analyst Jessica Reif Ehrlich downgraded Warner Music Group (NASDAQ:WMG) from Neutral to Underperform, citing streaming volatility and execution risks. The price target was lowered from $33 to $30. Despite long-term growth potential, emerging platform disappointments and organizational changes pose risks.
October 04, 2024 | 6:41 pm
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Warner Music Group was downgraded by BofA Securities from Neutral to Underperform, with a price target reduction from $33 to $30. The downgrade is due to streaming volatility, execution risks, and organizational changes. Despite long-term growth potential, these factors pose short-term challenges.
The downgrade by a major analyst and reduction in price target are significant negative signals for WMG. The concerns about streaming volatility and execution risks, along with reduced revenue and OIBDA estimates, suggest potential short-term downward pressure on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100