BigChampagne's Ultimate Chart (a/o February 10th):
1. “What Doesn't Kill You (Stronger),” Kelly Clarkson
2. “Set Fire to the Rain,” Adele
3. “Turn Me On,” David Guetta
4. “Rack City,” TYGA
5. “Good Feeling,” Flo Rida
6. “Smooth Criminal (Glee Cast Version),” Glee Cast
7. “Young, Wild & Free,” Snoop Dogg & Wiz Khalifa
8. “Domino ,” Jessie J
9. “Sexy and I Know It,” LMFAO
10. “Ass Back Home ,” Gym Class Heroes
A once-harsh analyst is once again praising Warner Music Group (WMG), despite a serious share price erosion over the past few months. In an investor note shared Wednesday, Pali Capital picker Richard Greenfield maintained his price target of $7.50, a bullish call that boosted valuations by 10 percent in Wednesday trading.
The $7.50-mark could be a difficult threshold to reach, though Greenfield painted gray skies blue in his analysis. Greenfield, once a Warner bear, slightly lowered his full-year EBITDA estimate, from $436 million to $413 million, and pointed to underlying strength in publishing.
Additionally, Greenfield softened the CD sales picture, and called for more modest revenue declines ahead. "CD unit sales calendar YTD are down around 20 percent, which is still considerably better than in calendar Q4 last year (down mid-20s)," Greenfield optimistically stated, while also pointing to a positive revenue impact from iTunes Store pricing increases.
Not buying it? Literally? One prominent investor questioned the call in conversations with Digital Music News, calling instead for a more rocky fourth quarter. "This stock is heading into Q4 headwinds, with HFT [high frequency trading] and a dead consumer," the less optimistic Wall Street veteran shared. "I don't know where the extra $3 comes from."
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