Bank of America maintains a Neutral rating on Warner Music Group with a $35 target amid expected fiscal Q3 market share normalization.
Warner Music Group (NASDAQ:WMG) is poised for a return to typical market share levels in its fiscal third quarter after outperforming in recent periods. The shift follows several quarters of stronger-than-usual performance, driven by price increases and streaming escalators, according to analysts.
Shares of WMG traded at $29 on Wednesday, reflecting a 5% decline year-to-date. The normalization was signaled after the company’s fiscal second-quarter results, with subscription streaming growth expected to accelerate later in the year due to new agreements with digital service providers.
Artificial intelligence remains a key focus, with potential opportunities and risks for the music industry. Cost-cutting measures and improved visibility into streaming growth could support multi-year earnings expansion.