Universal Music Group (UMGNF – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst James Heaney CFA from Jefferies maintained a Buy rating on the stock and has a €33.00 price target.
James Heaney CFA has given his Buy rating due to a combination of factors that suggest strong future growth for Universal Music Group (UMG). One of the primary reasons is the new deal with Spotify, which is expected to enhance monetization through the introduction of new subscription tiers, including a potential ‘Superfan’ tier. This agreement is anticipated to significantly boost UMG’s revenue, given its impressive roster of superstar artists.
Additionally, Heaney points out that UMG’s valuation remains attractive, with a clear path to accelerated revenue growth. The recent deal with Amazon Music and strategic partnerships with other digital service providers like Apple Music are also expected to contribute to this growth. These partnerships, along with potential pricing improvements, are likely to help UMG achieve its subscription growth targets, making the stock a promising investment opportunity.
In another report released on February 21, Deutsche Bank also maintained a Buy rating on the stock with a €35.00 price target.