Benzinga | Jan 4, 2022 12:07PM EST

Jefferies Upgrades Warner Music To Buy; Bumps Up Price Target By 22%

* Jefferies analyst Andrew Uerkwitz upgraded Warner Music Group (NASDAQ:WMG) to Buy from Hold with a price target of $50, up from $41. The price target implies an upside of 20.7%.

* Related Content: Access Industries Offloads Stake In Warner Music Via Equity Offering At 4.5% Discount

* Uerkwitz cited his higher confidence that digital streaming is still early and will provide a base of steady, predictable growth.

* The analyst noted that Street models are yet to appreciate the emerging platforms. Additionally, its capital structure provides flexibility for new investments and initiatives.

* Uerkwitz's new estimates are now above the Street view, and he is comfortable forecasting double-digit revenue growth for the next five years for Warner Music.

* With a legacy extending back over 200 years, Warner Music Group today is home to an unparalleled family of creative artists, songwriters, and companies moving culture across the globe.

* Price Action: WMG shares traded lower by 3.56% at $41.42 on the last check Tuesday.