Gold bars to be exempt from tariffs, White House clarifies
Investing.com - Bernstein SocGen Group raised its price target on Warner Music Group (NASDAQ:WMG) to $35.00 from $34.00 on Friday, maintaining an Outperform rating on the stock. The $16.6 billion market cap company has shown strong momentum, with shares gaining 8.8% in the past week and maintaining profitability over the last twelve months.
The research firm cited Warner Music Group’s sustained profitability and market share gains ahead of anticipated digital monetization growth in 2026. Bernstein SocGen noted that the company’s third-quarter 2025 results reinforced their positive outlook on WMG’s positioning. According to InvestingPro, the company maintains a healthy 46.8% gross profit margin and has received upward earnings revisions from two analysts for the upcoming period.
The firm expects Warner Music to experience an OIBDA (Operating Income Before Depreciation and Amortization) inflection driven by reaccelerating digital monetization and margin expansion. With current EBITDA at $1.27 billion, Bernstein SocGen believes WMG will be a key beneficiary as music digital service providers implement new pricing strategies and drive increased wholesale and retail average revenue per user.
Warner’s disciplined M&A strategy and centralized operating model were highlighted as factors supporting long-term value creation. The firm also pointed to catalog investments, such as Tempo, offering marketing opportunities tied to artist activation.
Bernstein SocGen specifically mentioned uplifts to Madonna’s, Slipknot’s, and Fleetwood Mac’s listening metrics in the quarter’s results as evidence of successful catalog management, reinforcing their view of an attractive setup for Warner Music Group in 2026.
In other recent news, Warner Music Group reported its Q3 2025 earnings, which showed a significant miss in earnings per share (EPS). The company posted an EPS of $0.03, falling short of the forecasted $0.29, an 89.66% discrepancy. Despite this, Warner Music Group exceeded revenue expectations, reporting $1.69 billion against a projected $1.59 billion, a 6.29% surprise. These developments have caught the attention of investors and analysts alike. The earnings report highlights the mixed performance of the company, with strong revenue figures but weaker-than-expected earnings. The revenue beat indicates robust sales, while the EPS miss suggests challenges in profitability. Analysts and investors will likely be watching closely for further updates and strategic moves by Warner Music Group.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.