UMG: BofA initiates at 'buy'

(CercleFinance.com) - BofA has initiated coverage of the Universal Music Group share with a 'buy' recommendation, and a price target of 34 euros.


According to the broker, UMG is in a position to be able to generate an average profit growth of 9%, and 15% in terms of revenue, thanks to the development of streaming platforms and other catalogue monetisation opportunities (social media, fitness, video games).

BofA, which points out that the share is trading at a 15% premium as compared with its rival Warner Music Group, highlights the trend towards the stabilisation of 'physical' record sales and gains in market share.

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