Deutsche Bank sees easing music app boom, rates Deezer at 'hold'

Deezer SA

08/08/2022 11:08

** Deutsche Bank initiates coverage of Deezer  DEEZR.PA 
with "hold" rating, citing risks from the post-pandemic
environment to the French music-streaming platform
    ** "The market is large, with a total retail value of ~$35bn
last year, but growth is likely to moderate following the
pandemic boom," says DB, after streaming drove the music
industry rebound over the past decade
    ** The broker says users typically subscribe to only one or
two music apps in the competitive space with many alternatives
offered by tech giants 
    ** "Deezer intends to pursue a B2B-focused growth strategy
to reach scale and profitability, but in the current environment
we see execution as a key risk" - DB
    ** Shares of Deezer are down by more than 50% YTD

 (Reporting by Dina Kartit)
 ((dina.kartit@thomsonreuters.com))