Jefferies Upgrades Warner Music To Buy; Bumps Up Price Target By 22%

Jefferies analyst Andrew Uerkwitz upgraded Warner Music Group WMG to Buy from Hold with a price target of $50, up from $41. The price target implies an upside of 20.7%.
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Uerkwitz cited his higher confidence that digital streaming is still early and will provide a base of steady, predictable growth.
The analyst noted that Street models are yet to appreciate the emerging platforms. Additionally, its capital structure provides flexibility for new investments and initiatives.
Uerkwitz's new estimates are now above the Street view, and he is comfortable forecasting double-digit revenue growth for the next five years for Warner Music.
With a legacy extending back over 200 years, Warner Music Group today is home to an unparalleled family of creative artists, songwriters, and companies moving culture across the globe.
Price Action: WMG shares traded lower by 3.56% at $41.42 on the last check Tuesday.

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