Lorne Steinberg Universal Music Group UMG-AMS PAST TOP PICK Jan 23, 2023

Growing topline in double digits. Margins expanding. Twice as large as Sony. Incredible catalogue, revenues from streaming are growing in double digits. A growth company, huge free cashflow. Dividend starts this year. Compelling and unique. (Price in euros.) Yield is 0.92%. (Analysts’ price target is $27.63)

It is the largest company in the music business. The monetization of music continues and streaming is of great benefit to this company. Has huge free cash flow and unique franchises as well as being able able to outbid others to add to these franchises.  More and more music is heard through the Internet which means advertising revenue.   Buy 17   Hold 3   Sell 2

(Analysts’ price target is $26.27)

Largest owner of music in the world -- Beatles, Taylor Swift, Drake, and others. Took all music off TikTok, forced contract renegotiations. Over 20% of UMG revenue from music is from music made over 20 years ago. Massive free cashflow. Best in the business. 

Music is growing in video games, streaming, health and fitness. Looking for revenues to grow by 10% a year, higher margins, faster earnings growth, generating free cashflow. Tremendous scale and value. An absolute core holding. (Price target is in euros.) Yield is 1.7%.

(Analysts’ price target is $30.13)