Deutsche Bank Initiates Coverage On Spotify, Warner Music

Deutsche Bank Initiates Coverage On Spotify, Warner Music
  • Deutsche Bank analyst Benjamin Black initiated coverage of stocks under the Recorded Music and Music Publishing category.
  • The category was "largely underpenetrated, under-monetized, and flush with optionality," now driven by social media, gaming, digital fitness.
  • The music business, which has been volatile over the last two decades, demonstrated much more excellent stability in trends, Black added.
  • Black initiated Spotify Technology SA SPOT with a Hold and $140 price target (11.6% upside). 
  • Black was bullish on Spotify's Premium Streaming growth opportunity, while less constructive than the Street on the upside opportunity with the emerging advertising business.
  • Black initiated Warner Music Group Corp WMG with a Buy and $42 price target (29.8% upside).  
  • Black initiated Universal Music Group NV UMGNF with a Buy and €42 price target. 
  • Price Action: SPOT shares traded lower by 5.10% at $125.91 on the last check Friday.

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