UMG: Jefferies reiterates its Buy recommendation on the stock

(CercleFinance.com) - Jefferies reiterates its Buy recommendation on Universal Music Group (UMG) shares, with a target price of E26, following the group's investor meeting (CMD).


We consider UMG's investor day objectives to be progressively positive, but the key to growth is likely to come from price increases and new premium offerings, analysts say.

We maintain our estimate and see growth via price increases, Jefferies adds.

The group has set new medium-term targets, to 2028. It has declared that it is targeting average annual sales growth of 7% over the period.

Growth in subscription revenues should be between 8% and 10%. Adjusted Ebitda should grow at a rate of at least 10% over the same period.


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