WMG declines amid analyst talk
Shares of Warner Music Group fell 4.4% on Monday after two bearish analyst reports. Pali Research analyst Richard Greenfield reduced his 2007 music industry outlook citing recent sluggishness in physical CD sales and downgraded WMG shares to "sell" with an $18.50 price target. Goldman Sachs analyst Anthony Noto also cut some of his financial forecasts for WMG and brought down his price target $3 to $25. "Our lowered estimates reflect greater than expected physical music declines that are not offset by digital growth," Noto wrote in a note to investors. WMG shares closed at $20.88. During the past year, they have traded between $19.71-$31.