Warner Music initiated with a Neutral at UBS

UBS initiated coverage of Warner Music Group with a Neutral rating and $29 price target. The analyst sees Warner as a long-term beneficiary of secular trends in the music industry. However, the company’s revenue growth has recently been below industry levels due to a delayed release slate and a choppy advertising market, the analyst tells investors in a research note. The firm believes artificial intelligence risks and uncertainty will limit Warner’s multiple expansion in the near-term, creating a balanced risk/reward profile.

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