Goldman Sachs downgraded Warner Music (WMG) to Neutral from Buy with a price target of $28, down from $35. The company reported “weaker” fiscal Q2 results that featured weaker subscription and ad-supported streaming growth, lowered expectations for subscription streaming revenue growth, and reduced visibility into margin expansion and free cash flow conversion, the analyst tells investors in a research note. The firm cites its lower estimates and reduced visibility “against an otherwise constructive secular backdrop” for the downgrade.
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