Universal Music Group price target raised to EUR 31 from EUR 29 at Deutsche Bank

Deutsche Bank analyst Benjamin Black raised the firm’s price target on Universal Music Group to EUR 31 from EUR 29 and keeps a Buy rating on the shares. The firm expects strong momentum in subscriptions and updates on the cost savings. UMG will report its Q4 and FY 2023 results on 28 February. For the year, Deutsche forecasts 9% year-over-year revenue growth on c/c and 115bps of adjusted EBITDA margin expansion. In its view, the focus should be on the strong momentum in subscription revenues, which the firm forecasts improved in Q4, and the outlook for the costs savings program. Deutsche will also look for updates on music monetization with new superfan experiences and products, geographic penetration plans, and initiatives to leverage AI and protect artists.