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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