Credit Suisse Sees 19.2% Upside In This Stock As Streaming Industry Gains Steam

  • Credit Suisse analyst Meghan Durkin upgraded Warner Music Group Corp WMG to Outperform from Neutral with a price target of $48, up from $37, implying a 19.2% upside. 
  • Warner is well-positioned as one of the top three music labels globally, benefitting from the global transition to on-demand music streaming, Durkin reasons. 
  • Durkin sees further upside in the stock as its growth outlook, margin profile, and valuation "become clarified." 
  • Durkin sees "healthy" ongoing streaming growth at Warner Music's Recorded Music segment through FY25, including mid-teens growth from paid subscriptions and advertising-supported streaming platforms. 
  • At the same time, new revenue should "continue to layer on" from new partners in social, gaming, and fitness industries, Durkin adds.
  • Price Action: WMG shares traded higher by 6.18% at $42.75 in the premarket session on the last check Tuesday.
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