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A top analyst has now issued a downgrade on Warner Music Group, a stock mired in the single digits. Goldman Sachs analyst Ingrid Chung suddenly soured on the stock, shifting her rating from "neutral" to "sell," based on continued recording industry difficulties and only modest market share gains.
In a research note this week, the analyst pointed to a US-based, 11 percent decline in recording sales during the first half, and a drizzly forecast moving forward. "We believe that [Warner Music] will find it increasingly difficult to improve its US market share after six straight quarters of doing so," Chung said.
The downgrade comes ahead of a second-quarter call, scheduled for Thursday. On Wall Street, shares have been bouncing around - down on Chung's new rating on Monday before recovering by the closing bell Tuesday. The stock is current at $8.24, a depressed valuation that signals broader concerns about future prospects.
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