Warner Music Group stock price target raised to $36 by BofA Securities

Investing.com - BofA Securities has raised its price target on Warner Music Group (NASDAQ:WMG) to $36.00 from $33.00 while maintaining a Neutral rating on the stock. Currently trading at $34.06, WMG sits near its 52-week high of $36.64, with analyst targets ranging from $30 to $46.

The firm expects Warner Music Group’s fourth fiscal quarter results to largely reflect a continuation of recent trends seen in previous quarters. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with particularly strong marks in profitability and price momentum.

BofA Securities notes that Warner Music Group now has a path to greater visibility in subscription streaming growth following recent deal renewals with digital service providers, which the firm believes has contributed to positive share performance over the last several months.

The firm also points out that Sony’s recent deal with Spotify removes a key hurdle to new product launches such as a potential "SuperPremium" tier, though questions remain about product features, launch timing, and potential economics around this new offering.

In the ad-supported streaming segment, BofA Securities describes the outlook as mixed, noting that some of the headwinds in audio streaming advertising have been widely acknowledged in the industry.

In other recent news, Warner Music Group reported its third-quarter 2025 earnings, where the company missed earnings per share (EPS) forecasts significantly, reporting $0.03 against the expected $0.29. However, the company managed to exceed revenue expectations, bringing in $1.69 billion compared to the projected $1.59 billion. In response to these earnings, several financial firms adjusted their price targets for Warner Music Group. Tigress Financial increased its price target to $45, maintaining a Buy rating, citing the company’s accelerating streaming subscription growth and technological advancements in artist development. Goldman Sachs raised its price target to $31, maintaining a Neutral rating, and highlighted better-than-expected subscription and ad-supported streaming growth. Bernstein SocGen increased its price target to $35, keeping an Outperform rating, and noted Warner Music Group’s sustained profitability and market share gains. These developments reflect varying perspectives on the company’s financial health and future prospects.

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