Universal Music Group’s share price just hit a 12-month high, as company’s market cap climbs to $49 billion

The top of October – particularly, Thursday, October 26 – guarantees to be an enormous one for the worldwide music enterprise.

For instance: it will likely be the day (barring some potential calendar shifts) that shareholders within the UK-listed Hipgnosis Songs Fund (HSF), will vote on two vital issues: (a) Whether or not to maintain HSF persevering with to exist in its current type (i.e. a ‘continuation vote’); and (b) Whether or not to simply accept a $440 million provide – from fellow Hipgnosis fund, Hipgnosis Songs Capital – to purchase a portion of HSF’s copyright portfolio.

In the meantime, October 26 can even see Universal Music Group current its newest quarterly numbers (Q3 2023) to shareholders.

UMG then plans to issue its stockholders with a EUR €0.24 per share dividend the next day – Friday, October 27.

Those self same UMG stockholders will seemingly be having fun with the present state of Common’s share worth on the Amsterdam Euronext.

Yesterday (October 10), UMG’s inventory worth reached EUR €25.53, earlier than closing the day at EUR €25.35.

This was the biggest closing day by day share worth that UMG had achieved on the Euronext for greater than a yr.

In reality, it was really the best closing inventory worth the corporate had seen since method again in December 2021, in accordance with Euronext data.

In different phrases: Common’s closing share worth yesterday (October 10) was bigger than it has been at any earlier level in 2023… and bigger than it was at any level in 2022.

Driving the purpose house: UMG’s EUR €25.35 share worth yesterday was up near 50% (+47%) on the EUR €17.25 share worth the corporate ended the buying and selling day with precisely a yr in the past (October 11, 2022).

(On the shut of in the present day – October 11, 2023 – UMG’s share worth on the Euronext held virtually all of its worth from yesterday, at EUR €25.33.)

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What does that every one imply for UMG’s market cap?

In valuation phrases, UMG’s present EUR €25.33 share worth equates to a company-wide market cap valuation of EUR €46.14 billion, in accordance with Euronext information.

In flip, that EUR €46.14 billion present UMG market cap equates – at present change charges – to a whopping USD $48.97 billion.

How does this determine evaluate to Common’s historic (and traditionally profitable) opening worth on the Euronext when UMG floated in September 2021?

Properly, UMG’s market cap that well-known morning (Sept 21, 2021) rose to EUR €46.37 billion – very near the place it sits (EUR €46.14bn) as you learn this text.

Constructive noises from the analyst neighborhood

As MBW not too long ago reported, JP Morgan responded positively to Common’s announcement, alongside Deezer, that the French DSP could be launching an ‘artist-centric’ royalty mannequin alongside UMG in France this month (October).

On September 7, Daniel Kerven at JP Morgan, who has lengthy adopted UMG’s inventory, elevated his worth goal for UMG’s share worth – up from EUR €31 to EUR €33.

UMG’s present share worth stays round €7.65 wanting this goal.

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Extra not too long ago, analysts together with Richard Eary from UBS (UMG worth goal: EUR €29.00) and Barclays’ Julien Roch have maintained a ‘Purchase’ score on UMG’s inventory.

On October 6, Guggenheim Companions’ Michael Morris and group maintained their ‘Purchase’ score on UMG’s inventory, elevating their worth goal to EUR €27 from EUR €25.

Guggenheim highlighted “key strategic and monetary alternatives” for UMG, together with its “not too long ago signed artist-centric settlement with Deezer” in addition to an “anticipated [new] TikTok deal”.

Guggenheim expects UMG’s Q3 recorded music subscription streaming income progress to face at 13.3% YoY.Music Enterprise Worldwide