JPMorgan Trims the PT for Warner Music Group (WMG) to $32

JPMorgan analysts trimmed the price target for Warner Music Group Corp. (NASDAQ:WMG) to $32 from $38 on June 5, while keeping an Overweight rating on the stock. The price target was adjusted after WMG’s recent performance, with the shares dropping 7% after its fiscal Q2 results were released on May 8.

JPMorgan Trims the PT for Warner Music Group (WMG) to $32

A team of record producers and musicians in the studio, their creative process on full display.

As Warner Music posted its Q2 earnings miss, it led to reduced consensus forecasts, which in turn dragged on the company’s performance. WMG also retracted its RM subscription streaming guidance for 2025, highlighting obstacles including a shrinking market share in China and a lighter release slate. Moreover, the latest news about label talks with music AI companies has triggered concern among investors.

Regardless of these setbacks, JPMorgan analysts are optimistic about the future. The company is projected to leverage higher wholesale pricing and superfan tiers in 2026, which could add to potential upside. Warner Music is positioned to capitalize on the growing global adoption of music streaming services, notable room for pricing growth, and greater scalability. While Warner Music Group Corp. (NASDAQ:WMG) presently trades at high P/E and P/B levels, the stable profitability of the company has contributed to a 5-year streak of consecutive dividend increases.

Warner Music Group Corp. (NASDAQ:WMG) is a major player in the music industry, working worldwide to discover and promote artists through its record labels. The company also manages a massive collection of songs across different genres and handles music rights for movies and TV series.

While we acknowledge the potential of WMG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None.