Warner Music Group: The Only Pure-Play Entity In The Streaming Music Growth, Bullish Analyst Says

Tigress Financial Partners analyst Ivan Feinseth reiterated a Buy rating on Warner Music Group Corp. WMG, maintaining the price target at $52.
The analyst expects the company to be the only pure-play entity in the growth of streaming music, coupled with a robust 2023 release schedule.
The analyst is particularly upbeat about the company's broad network to expand its content, which will continue to drive accelerating Business Performance trends.
Warner Music will also likely gain from acquisitions and investments across the Middle East, North African music distributor Qanawat Music and leading independent African music distribution company Africori Ltd.
The analyst applauds Warner Music's latest tie-ups with the world's most popular emerging and contemporary artists, including Ed Sheeran, Dua Lipa, Tatsuro Yamashita, GOT7, Jack Harlow, and Gunna, which is expected to create a "full music-driven immersive entertainment experience," driving future growth.
Given the above trends, Tigress Financial expects the company's net sales revenue to grow by 6.42% to $6.17 billion in FY23. The company's revenues jumped 12% year-on-year to $5.92 billion in FY22.
Economic Operating Cash Flow is expected to increase by 7.86% to $1.33 billion. Net Operating Profit After Tax will grow by 13.60% to $710.5 million.
The company will also boost growth and shareholder value creation by strategically allocating its cash and cash flow through ongoing investments in new growth initiatives and strategic acquisitions.
In August last year, Warner Music increased its quarterly dividend by 7% from $0.15 per share to $0.16 per share. The analyst expects a further dividend increase later this year as well.
Price Action: WMG shares are trading higher by 2.15% at $32.34 on the last check Thursday.

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