Wells Fargo downgraded Universal Music Group (UMGNF) to Equal Weight from Overweight with a price target of EUR 27, down from EUR 32, following quarterly results. The firm now believes streaming/subscription growth challenges will persist over the near-term and doesn’t expect growth to re-accelerate for at least the next 2-3 quarters. Wells expects subscription growth to remain challenged reflecting a slowdown in sub growth at Amazon (AMZN)/Apple (AAPL), tougher comps, and the lapping of Spotify (SPOT) price hikes in Q4.
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