Wolfe starts Warner Music at Outperform, views it as pure-play IP company

Wolfe Research analyst Devin Brisco initiated coverage of Warner Music with an Outperform rating and $37 price target. The firm views Warner Music as a pure-play IP company with significant exposure to the evergreen appeal of music streaming. As the third biggest music label, Warner owns a critical mass of content in an industry without substitutes, making it essential to music distributors who primarily pay for content via pro-rata royalties, the analyst tells investors in a research note.