Universal Music Group (OTCMKTS:UMGNF) Receives Consensus Rating of “Moderate Buy” from Analysts

Shares of Universal Music Group (OTCMKTS:UMGNF) have been given a consensus recommendation of “Moderate Buy” by the six ratings firms that are covering the firm, MarketBeat.com reports. Two equities research analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company.

A number of analysts recently issued reports on UMGNF shares. Morgan Stanley reissued an “overweight” rating on shares of Universal Music Group in a research report on Friday, January 9th. Guggenheim raised shares of Universal Music Group from a “neutral” rating to a “buy” rating in a research report on Tuesday, March 31st. Moffett Nathanson began coverage on shares of Universal Music Group in a research report on Tuesday, January 27th. They issued a “buy” rating for the company. Finally, Wells Fargo & Company downgraded shares of Universal Music Group from an “overweight” rating to an “equal weight” rating in a research report on Monday.

Universal Music Group News Summary

Here are the key news stories impacting Universal Music Group this week:

• Positive Sentiment: Pershing Square submitted a cash-and-stock offer valuing UMG at about $64bn; the bid is the immediate catalyst lifting the share price as it implies a substantial premium to recent trading levels. Ackman’s Pershing Square offers to buy Universal Music for nearly $65 billion
• Positive Sentiment: Analysts and market commentary note the proposal would move UMG’s primary listing to New York and convert the combined company to a Nevada corporation — a structural change Pershing Square says could address underperformance and unlock shareholder value. How Ackman Is Trying to Force Universal Music Group Onto the U.S. Market
• Neutral Sentiment: Market reaction is tempered by the groups’ history: Pershing Square and UMG have had a rocky relationship, so execution risk and governance friction could complicate a transaction even if the bid is attractive. Universal Music, Pershing Square’s rocky relationship
• Neutral Sentiment: Analysts are split on whether UMG’s largest stakeholders — notably the Bolloré family and Vivendi-linked interests — will support the offer; that split creates deal uncertainty and keeps the stock from fully pricing in a takeover. Ackman’s UMG bid sees analysts split on Bolloré’s next move
• Negative Sentiment: Wells Fargo lowered its rating on UMG, a near-term headwind that could limit upside if other brokers follow or if investors use the downgrade as a reason to sell into the takeover-driven rally. Universal Music Group (OTCMKTS:UMGNF) Stock Rating Lowered by Wells Fargo & Company

Universal Music Group Price Performance

UMGNF opened at $23.16 on Monday. The firm has a 50 day moving average price of $21.55 and a 200 day moving average price of $24.61. Universal Music Group has a 1 year low of $17.36 and a 1 year high of $33.77.

Universal Music Group Company Profile

Universal Music Group (OTCMKTS:UMGNF) is one of the world’s leading music entertainment companies, engaged in recorded music, music publishing, merchandising and brand partnerships. The company’s recorded music division encompasses a roster of major labels—such as Interscope Geffen A&M, Capitol Music Group, Republic Records, Island Records and Decca—and works with a diverse array of artists across genres ranging from pop and hip-hop to classical and jazz. Its music publishing arm, Universal Music Publishing Group, administers and exploits compositions by both established songwriters and emerging talent, providing licensing services for film, television, advertising and digital platforms.

Headquartered in Santa Monica, California, Universal Music Group operates on a truly global scale with regional offices in North America, Europe, Latin America, Asia-Pacific and Africa.