Warner Music Group Raised to $33 by JP Morgan

JP Morgan analyst Alexia Quadrani has maintained an "Overweight" rating for Warner Music Group (WMG) and raised the price target from $32 to $33, a 3.12% increase. This suggests confidence in WMG's future performance and a positive outlook on the company as it navigates the evolving music industry landscape. The average target price for WMG is $32.95 with an upside of 12.27% from the current price.

JP Morgan analyst Alexia Quadrani has maintained an "Overweight" rating for Warner Music Group (WMG) and raised the price target from $32 to $33, a 3.12% increase. This move reflects confidence in WMG's future performance and a positive outlook on the company as it navigates the evolving music industry landscape. The average target price for WMG is $32.95 with an upside of 12.27% from the current price [1].

Bernstein SocGen Group, another leading financial institution, has also shown optimism, raising its price target to $34.00 from $32.00 while maintaining an Outperform rating. The firm anticipates Warner Music to report results in line with consensus expectations in early August, with the potential for a boost from a legal settlement with cable operator Frontier that could enhance adjusted OIBDA and earnings [1].

Warner Music Group has been proactive in cost reduction and strategic investments. The company has outlined plans to achieve approximately $300 million in annual cost savings, which has been positively viewed by Bernstein SocGen Group. Additionally, a significant $1.2 billion joint venture with Bain Capital to enhance its music catalog purchasing power is expected to strengthen Warner’s position in both the recording and publishing sectors [1].

Despite the positive outlook, Goldman Sachs has downgraded Warner Music Group’s stock from "Buy" to "Neutral," citing weaker-than-expected growth in subscription and ad-supported streaming revenues for the second quarter of fiscal year 2025. The firm’s revised price target is now set at $28.00, reflecting a more cautious outlook on Warner’s financial health [1].

Analysts at Bernstein SocGen Group remain optimistic about Warner Music’s potential, highlighting the company’s strong management and strategic initiatives. They anticipate significant digital revenue growth in 2026, driven by new subscription tiers and efficiency gains. The firm expects Warner’s gross margin to expand to approximately 23.3% in fiscal 2026, underpinned by expanding margins and strategic investments [1].

The evolving landscape of the music industry presents both opportunities and challenges for Warner Music Group. The company’s ability to adapt and capitalize on these changes will be crucial in determining its future performance.

References:
[1] https://www.investing.com/news/analyst-ratings/bernstein-raises-warner-music-group-stock-price-target-to-34-on-cost-savings-93CH-4122588
[2] https://www.benzinga.com/news/25/07/46276944/jp-morgan-sees-30-growth-for-voyager-technologies-and-thats-before-starlab-kicks-in
[3] https://site.financialmodelingprep.com/market-news/fmp-bernstein-raises-warner-music-target-to-$34-ahead-of-q3-results