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Investing.com - Wells Fargo upgraded Warner Music Group (NASDAQ:WMG) from Equal Weight to Overweight on Tuesday, setting a price target of $39.00. Currently trading at $32.15, WMG has shown strong momentum with an 11.2% return over the past six months. According to InvestingPro’s analysis, the stock is currently fairly valued.
The upgrade follows Wells Fargo’s analysis showing Warner Music Group reached a market share of 19.6% in fiscal fourth quarter 2025, its highest level since the second calendar quarter of 2021. The company has gained market share sequentially in six of the last seven quarters. With a solid Financial Health Score of 2.49 from InvestingPro, WMG has maintained a consistent dividend growth of 11.8% and has raised dividends for five consecutive years.
Wells Fargo identified the turnaround at Atlantic Records as a key driver behind the improved performance. Atlantic Records has posted its highest market share in three years following the appointment of Elliot Grainge as CEO a year ago.
Warner Records has also contributed to the company’s strengthened position by achieving all-time market share highs, according to the Wells Fargo analysis.
The research firm believes the improvements in Warner Music Group’s frontline labels are sustainable, leading to raised fiscal 2026 estimates and expectations that new digital service provider terms and catalog acquisitions will drive subscription growth above market expectations.
In other recent news, Warner Music Group has seen several adjustments in analyst price targets following its financial performance and strategic developments. Goldman Sachs increased its price target for Warner Music Group to $31, citing better-than-expected growth in subscription and ad-supported streaming. Similarly, Bernstein SocGen raised its price target to $35, highlighting the company’s sustained profitability and market share gains. Meanwhile, BofA Securities adjusted its target to $36, maintaining a Neutral rating while anticipating consistent trends in upcoming quarterly results.
Tigress Financial Partners took a more optimistic stance, raising their price target to $45, driven by Warner Music Group’s accelerating streaming subscription growth and improved technological leverage for artist development. UBS reiterated a Buy rating with a $40 target, expecting Warner Music Group to benefit from structural changes in digital service provider payments. These recent developments underscore the varied analyst perspectives on Warner Music Group’s future performance and strategic positioning in the market.
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