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Investing.com - Bernstein SocGen Group has raised its price target on Warner Music Group (NASDAQ:WMG) to $38.00 from $35.00 while maintaining an Outperform rating on the stock. The new target represents a 21% upside from the current price of $31.32, with analyst targets ranging from $30 to $46, according to InvestingPro data.
The firm expects continued momentum in subscription streaming into fiscal 4Q25, forecasting approximately 8% year-over-year growth as music releases continue to trend higher compared to the second quarter’s lighter release schedule. This growth projection aligns with Warner Music’s historical revenue CAGR of 8% over the past five years.
Bernstein sees meaningful performance and licensing tailwinds for Warner Music Group , driven by the strong summer concert season and the recent Netflix deal, which it considers crucial for maintaining 8-9% publishing growth. The company generated $6.47 billion in revenue over the last twelve months, with a healthy gross profit margin of 46.6%.
The analyst note highlights that Warner’s label is positioned to benefit from contractual step-ups in recording rights next year, following this year’s direct publishing rationalizations. Warner Music has consistently rewarded shareholders, having raised its dividend for 5 consecutive years with an 11.8% dividend growth rate over the last twelve months.
Additional growth opportunities for Warner Music Group in 2026 are expected to come from new AI revenue streams and expanded distribution opportunities with digital partners, according to the research firm. With earnings scheduled for November 20 and an EPS forecast of $1.23 for fiscal 2025, investors seeking deeper analysis can access Warner Music’s comprehensive Pro Research Report on InvestingPro, which includes 7 additional ProTips and over 50 financial metrics.
In other recent news, Warner Music Group has received several updates from various financial firms regarding its stock ratings and price targets. Wells Fargo upgraded Warner Music Group’s stock rating from Equal Weight to Overweight, setting a price target of $39.00, after the company achieved a market share of 19.6% in the fiscal fourth quarter of 2025. UBS reiterated its Buy rating and maintained a price target of $40.00, expecting Warner Music Group to benefit from structural changes in digital service provider payments. BofA Securities raised its price target to $36.00 while maintaining a Neutral rating, anticipating that the company’s fourth fiscal quarter results will reflect ongoing trends.
Tigress Financial Partners increased its price target to $45.00, highlighting Warner Music Group’s growth in streaming subscriptions and technology use for artist development as significant factors. The firm also emphasized operating efficiencies and cost reductions contributing to revenue growth and cash flow. Goldman Sachs raised its price target to $31.00 following the company’s fiscal third-quarter 2025 results, citing better-than-expected subscription and ad-supported streaming growth. They also noted an improved outlook on multi-year streaming revenue growth and margin expansion. These developments indicate a positive shift in analysts’ perspectives on Warner Music Group’s financial performance and future potential.
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