- Deutsche Bank analyst Benjamin Black initiated coverage of stocks under the Recorded Music and Music Publishing category.
- The category was "largely underpenetrated, under-monetized, and flush with optionality," now driven by social media, gaming, digital fitness.
- The music business, which has been volatile over the last two decades, demonstrated much more excellent stability in trends, Black added.
- Black initiated Spotify Technology SA (NYSE:SPOT) with a Hold and $140 price target (11.6% upside).
- Black was bullish on Spotify's Premium Streaming growth opportunity, while less constructive than the Street on the upside opportunity with the emerging advertising business.
- Black initiated Warner Music Group Corp (NASDAQ:WMG) with a Buy and $42 price target (29.8% upside).
- Black initiated Universal Music Group NV (OTC:UMGNF) with a Buy and €42 price target.
- Price Action: SPOT shares traded lower by 5.10% at $125.91 on the last check Friday.
