Reservoir Media (RSVR) Stock Forecast & Price Target

Reservoir Media Inc. shows a positive financial trajectory, with projected revenue of $177 million for FY27, reflecting a year-over-year growth of 5.5%. The company demonstrates strong profitability, projecting an EBITDA of $75 million, which equates to a margin of 42.4%, alongside a free cash flow of $70 million. Additionally, the firm benefits from a robust asset base, including over 150,000 composition copyrights and 36,000 master recordings, positioning it well to capitalize on favorable industry trends and potential price increases in digital streaming.

The financial outlook for Reservoir Media Inc. has been negatively adjusted, with revenue and EBITDA estimates for FY26 lowered from $175 million and $74 million to $168 million and $71 million, respectively. Additionally, the company faces challenges from significant technological changes that may increase music piracy and hinder its ability to enforce intellectual property rights, potentially impacting revenue streams. Furthermore, Reservoir's competitive position may be compromised if it is unable to attract successful songwriters and recording artists or match competitors' offers for catalog acquisitions.