Citi resumes coverage on UMG, sees growth from deals with streaming platforms
BUZZ-Citi resumes coverage on UMG, sees growth from deals with streaming platforms ** Citigroup resumes coverage of Netherlands-based music company Universal Music Group UMG.AS with a "buy" rating and a €20 price target, citing several growth drivers
** The brokerage sees continued upside from higher minimum-per-subscriber payments under new agreements with digital streaming platforms that raise the wholesale price of music starting in 2026
** Citi says AI-enabled mix tracks from a potential Spotify launch in H2 or early 2027 could provide additional upside for UMG
** It also cites robust share repurchases as one of the reasons it likes the stock
** Out of 24 analysts that cover Universal Music Group, thirteen rate the stock "strong buy" or "buy," seven rate "hold" and four rate the stock "strong sell" or "sell" - LSEG data
(Reporting by Aleksandra Kret in Gdansk)