Morgan Stanley keeps Overweight on Warner Music, citing strong Q3 growth and cash flow.

Morgan Stanley maintained an Overweight rating on Warner Music Group (WMG) with a revised price target of $36, down from $39, reflecting confidence in the stock's growth potential. WMG reported a 9% increase in total revenue and a 15% rise in Adjusted OIBDA in Q3, alongside a 209% surge in operating cash flow, driven largely by subscription streaming. The company has consistently met or exceeded its financial targets for five consecutive quarters, highlighting its robust financial health and profitability. This positive outlook suggests WMG is well-positioned for continued growth in the competitive music industry.