BUZZ-UMG's share price '100% wrong' and stock undervalued, J.P. Morgan says

J.P. Morgan says Universal Music Group (UMG) UMG.AS is very undervalued within the music value chain, despite sharing the same customers as better-valued Spotify SPOT.N

"We do not believe the valuation gap between Spotify and UMG is due to Spotify being overvalued, rather we believe it reflects that UMG is undervalued," it says

Broker calls UMG's share price "100% wrong" as it does not reflect its "growth and quality"

JPM points to UMG's recent streaming deals with Amazon AMZN.O and Spotify that should boost subscription growth

"UMG is more diversified with music subscriptions only accounting for circa 47% of revenues today, whereas they represent circa 85% for Spotify," it adds

As of Thursday's close, UMG shares are up 6.7% this year