Atlantic upgrades Warner Music on ‘solid growth’ despite backdrop

Atlantic Equities analyst Hamilton Faber upgraded Warner Music to Overweight from Neutral with a price target of $41, up from $34. The analyst’s research shows music streaming subscriptions growing at 10% annually over the next ten years. In addition, recent results show Warner Music can deliver solid growth in spite of a difficult economic backdrop, Faber tells investors in a research note. Q4 showed an acceleration in streaming revenue growth as growth in emerging streaming offset cyclical declines in advertising streaming, says the analyst. "Given the uncertain backdrop, we believe any company that can deliver sustainable growth will attract investor interest," writes Faber.