Warner Music price target raised to $40 from $36 at Deutsche Bank

Deutsche Bank raised the firm’s price target on Warner Music to $40 from $36 and keeps a Buy rating on the shares. The company’s fiscal Q3 results came in handily above expectations and management stated that terms with Spotify had not been renewed, indicating that existing economics potentially remain intact when the upcoming Spotify price increase begins to flow through to Warner results in fiscal Q1, the analyst tells investors in a research note. The firm thinks there is a growing likelihood that the company’s subscription streaming growth accelerates once again in Q4.