Warner Music price target raised to $42 from $40 at Morgan Stanley

Morgan Stanley analyst Benjamin Swinburne raised the firm’s price target on Warner Music (WMG) to $42 from $40 and keeps an Overweight rating on the shares. The firm raised estimates and price targets on both Spotify (SPOT) and Warner Music as it continues to see “a compelling opportunity for investors in music streaming.” Double digit industry growth, combined with improving profitability for both distributors and suppliers, should support upward revisions and multiple expansion, the analyst argues.