UMG: Oddo BHF confirms its recommendation on the stock

(CercleFinance.com) - Oddo BHF maintains its Outperform rating on UMG shares, with an unchanged target price of 32 euros.


The broker believes that UMG is being penalized in particular by weak volumes (subscription growth) at streaming platforms (Apple and Amazon) and the end of the impact of price increases, which should still be the case in Q4

'We expect adjusted EBITDA to reach ME2,891 in 2025, i.e. 11% growth vs. last year. This is due to a combination of organic growth of 7% and the continuation of the 250 ME cost-cutting plan", continues Oddo BHF.

The analyst expects organic growth of 7% for paid streaming, and 7% for free streaming.

For physical sales, we expect growth of 13%, underpinned by the new distribution agreement with BMG, due to start in January', concludes the broker.

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