7digital is a B2B music streaming business. We believe a combination of an extensive music catalogue, limited competition and a well capitalised balance sheet uniquely positions 7digital to exploit the fastgrowing voice assistant market and accelerate the penetration of music streaming. However, our analysis shows the shares currently price an overly bearish mid-term scenario (zero growth and margins -200bps). We initiate coverage of 7digital with a Buy rating and a DCF-driven PT of 9.5p, imp
20 Feb 2018
Initiating coverage with a Buy rating and 111% upside (base)
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Initiating coverage with a Buy rating and 111% upside (base)
- Published:
20 Feb 2018 -
Author:
Kartik Swaminathan -
Pages:
42
7digital is a B2B music streaming business. We believe a combination of an extensive music catalogue, limited competition and a well capitalised balance sheet uniquely positions 7digital to exploit the fastgrowing voice assistant market and accelerate the penetration of music streaming. However, our analysis shows the shares currently price an overly bearish mid-term scenario (zero growth and margins -200bps). We initiate coverage of 7digital with a Buy rating and a DCF-driven PT of 9.5p, imp