UMG: Credit Suisse starts tracking as a buyer

(CercleFinance.com) - Credit Suisse has begun to monitor Universal Music Group (UMG) shares with an "outperforma" rating and a target price of 29.
5 euros, seeing it as the world leader in music content and a distinctive asset in a European context.

The broker notes that the company benefits from an industry that is growing at a high single-digit rate thanks to streaming, which is boosting the proportion of predictable subscription revenue - which is expected to reach 61% of revenue by 2025, up from 50% today.

For 2021-25, Credit Suisse expects UMG to post average annual sales growth of 8.7%, with adjusted EBITDA up by 12.7% p.a. while adjusted net income is expected to rise by 16.6% each year.

The share is up around 1% an hour from close on Friday.


Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.