Redburn-Atlantic Downgrades Warner Music Group (WMG) to Sell

Redburn-Atlantic analyst Agnieszka Pustula downgraded Warner Music Group (NASDAQ: WMG) from Neutral to Sell with a price target of $23.00.

The analyst comments: "The industry's looming structural risks have started to show in WMG's share price performance. Universal Music Group (UMG), however, is trading at c23x EV/EBITDA 2024 based on our normalised estimates, c40% premium to WMG – despite an almost identical operating profit growth on a like-for-like (LFL) basis over the past three years and similar growth forecasts. The day of reckoning for the labels might come as soon as the next set of results, as price hikes implemented across the past year annualise and growth decelerates. While we maintain our relative preference for WMG, our target price of $23 offers 25% potential downside and we downgrade WMG to Sell."

For an analyst ratings summary and ratings history on Warner Music Group click here. For more ratings news on Warner Music Group click here.

Shares of Warner Music Group closed at $30.34 yesterday.

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