Key Insights:
- Morgan Stanley downgrades Warner Music Group (WMG, Financial), revising the price target to $35.
- Analysts predict a 29.27% potential upside from the current stock price.
- Warner Music Group maintains an "Outperform" status with an average brokerage recommendation of 2.3.
Analyst Downgrade: What It Means for Warner Music Group
Morgan Stanley recently revised its stance on Warner Music Group (NASDAQ: WMG), downgrading the stock from "overweight" to "equal weight." Alongside this shift, the investment bank adjusted the price target to $35, indicating a modest 10% upside from the current price. This adjustment reflects expectations for tempered growth in streaming revenue over the next year, despite acknowledging potential improvements in Average Revenue Per User (ARPU) in the longer term.
Wall Street's Projections for WMG
The forecast from 18 analysts offers an average target price for Warner Music Group Corp at $35.56, with projections spanning from a high of $44.00 to a low of $23.00. This average target suggests a 29.27% upside potential from the current stock price of $27.51, as detailed on the Warner Music Group Corp (WMG, Financial) Forecast page. This anticipated growth underscores a positive outlook despite Morgan Stanley's recent downgrade.
Brokerage Recommendations and GF Value Estimation
Warner Music Group Corp retains an "Outperform" status, based on the consensus recommendation from 20 brokerage firms, reflected in an average recommendation score of 2.3 on a scale where 1 indicates a "Strong Buy" and 5 denotes a "Sell."
According to GuruFocus estimates, Warner Music Group Corp's one-year GF Value stands at $34.75, hinting at a 26.32% upside from the current market price of $27.51. The GF Value represents GuruFocus' appraisal of the stock's fair value, derived from both historical trading multiples and projections of the company's future performance. For more insights into the company's valuation, visit the Warner Music Group Corp (WMG, Financial) Summary page.
Overall, while Warner Music Group faces a cautious outlook from Morgan Stanley, the broader analyst consensus suggests a promising growth trajectory, with significant upside potential in the coming year.
