Deutsche Bank Securities, an underwriter in the recent Warner Music Group IPO, has issued a buy rating on major label’s stock. In a July 6 research note to investors, analyst Douglas Mitchelson said

Deutsche Bank Securities, an underwriter in the recent Warner Music Group IPO, has issued a buy rating on major label's stock.

In a July 6 research note to investors, analyst Douglas Mitchelson said that "investor concerns regarding Warner Music’s prospects are overblown, creating an attractive opportunity for patient investors."

Mitchelson expects WMG's digital revenue will top $147 million in 2005, up from $38 million last year.

He has set a price target of $22 for the stock-–a 37% improvement over recent Warner Music Group trading levels. Warner stock closed at $15.99 yesterday. The company went public on May 11 at $17 a share.

Questions? Comments? Let us know: @billboardbiz

Print