BofA downgrades Warner Music Group on volatile long-term growth in streaming
** Shares of media company Warner Music Group WMG.O fall 1.82% to $31.28
** Brokerage BofA cuts rating to "underperform" from "neutral", lowers PT to $30 from $33
** Warnslonger-term growth potential and viability of music labels may not be as significant and predictable due to volatility in ad-supportedstreaming and more variability in subscription streaming than expected
** Says greater evidence of sustainable and visible growth in digital streaming is needed to get more constructive on shares
** Notes WMG enjoysa premium valuation vs other media and entertainment players
** Sees lower estimates for Q4 and FY25, ahead of expected results in November
** Co had previously announced layoffs of its 750 employees as part of restructuring plans to have pre-tax cost savings of $260 million
** Eleven of 19 brokerages rate the stock "buy" or higher, six "hold" and two "sell", with a median PT of $36 - LSEG data
** Up to Thursday's close, stock had fallen 11% YTD
Reporting by Neil J Kanatt in Bengaluru
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