Warner Music Likely To Gain From Distributor Price Hikes & Streaming Contract Renewals, Analyst Says

Morgan Stanley analyst Benjamin Swinburne maintained Warner Music Group Corp WMG with an Overweight and raised the price target from $31 to $38.
As the headwinds that weighed on FY22 begin to fade in Q1, Swinburne sees shares set up to outperform.
WMG reported fourth-quarter FY22 revenue growth of 8.8% year-on-year to $1.497 billion, beating the consensus of $1.42 billion.
Recorded Music revenue grew 6% Y/Y to $1.24 billion. Music Publishing increased 24% Y/Y to $254 million, and Digital grew 7% Y/Y to $989 billion.
GAAP EPS was $0.28 versus $0.05 the prior year.
Beyond fading headwinds, he notes that WMG should benefit from price increases by its distributors and emerging streaming contract renewals.
Ben raised his estimates and his price target.
Price Action: WMG shares closed higher by 1.27% at $32.60 on Friday.
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