Warner Music Group Corp.'s stock climbed Tuesday after a Goldman Sachs analyst boosted her price target, citing market share growth and industry stabilization.
In a client note, Ingrid Chung said Warner has managed to improve its market share through the efforts of its artist and repertoire division. Stabilization in the recorded music industry has also helped Warner Music, along with a plan to pull back on investment efforts.
Chung lifted her six-month price target to $8 from $6.50 and reiterated a "Neutral" rating.
However, she was a bit cautious on the recording company's suspended dividend, saying it "is not a resounding vote of confidence in the company's prospects."
Last week Warner said it would suspend its dividend payments to shareholders to reduce debt amid the uncertain economy, unstable credit markets and ongoing softness in the recorded music market.
Shares of New York-based Warner Music Group added 37 cents, or 4.7 percent, to $8.31. The stock has traded in a range of $4.57 to $17.57 over the past year.
Terms & Conditions
RSS Headlines
Fool UK