UMG: UBS reiterates buy rating

(CercleFinance.com) - The analyst confirms his buy recommendation on the stock, with a target price of E26, following the announcement of Q2 results that are in line with expectations.


The major record companies paid streaming revenues grew by 8% in Q2 2024, with UMG and Sony losing market share. Expect UMG to post growth of 7% in Q3 and 5% in Q4, but an increase is possible if subscriber growth is faster than expected, UBS says.

UMG's reported 7% growth in subscriptions contrasts with Spotify's 21% reported growth in the same quarter, the broker says.

It judges the slowdown in streaming growth to be temporary, and that a re-acceleration is credible and not priced in. However, it adds that it has reduced the risks in its earnings forecasts for the group.


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