Morgan Stanley has upgraded Warner Music Group Corp (WMG) to Overweight from Equal-Weight as of December 17, 2025. This change comes as the firm reassesses its outlook on the company, suggesting a more positive view of Warner Music's prospects.
Warner Music Group, based in New York City, is a key player in the media industry, engaging in the publishing and recording of music. The company, which employs approximately 5,800 full-time staff, went public on June 3, 2020. It boasts a diverse catalog through its record labels, including Atlantic Records, Warner Records, and Elektra Records, among others. Additionally, its music publishing arm, Warner Chappell Music, holds over one million copyrights spanning various genres.
As of the last market close, Warner Music shares were priced at $30.16, with a market capitalization of $15.5 billion. The company has a P/E ratio of 52.21 and an EPS of 0.57, alongside a substantial dividend yield of 239.1%. Upcoming earnings are anticipated on August 5, 2026, with an EPS estimate of $0.37 and revenue expectations of $1.8 billion.
Analyst ratings, such as this upgrade, provide valuable insights based on extensive research and financial models. However, they are not foolproof and should be considered alongside various factors, including company fundamentals and market trends. As of December 1, 2025, the consensus rating for Warner Music is a Buy, with 8 Strong Buy, 9 Buy, and 7 Hold ratings among analysts.
The move underscores a shift in sentiment that could reflect improved fundamentals or confidence in Warner Music's strategic direction. As always, investors should weigh these ratings along with their own financial goals and market conditions.