Reservoir Media (RSVR) Stock Forecast & Price Target

Reservoir Media Inc is projected to achieve a revenue of $177 million in FY27, reflecting a year-over-year growth of 5.5%, supported by a robust EBITDA margin of 42.4%. The company demonstrated continued growth in its music publishing and recorded music segments, with respective year-over-year increases of 5.6% and 7.3%. Additionally, Reservoir's extensive asset base, comprising over 150,000 composition copyrights and 36,000 master recordings, positions it well to capitalize on ongoing favorable industry trends and anticipated price increases from digital streaming platforms.

Reservoir Media Inc. has revised its financial projections for FY26, lowering its revenue and EBITDA estimates from $175 million and $74 million to $168 million and $71 million, respectively. The company faces significant challenges due to emerging technological changes that may increase music piracy, complicating the enforcement of its intellectual property rights and potentially hindering its ability to adapt its business model. Additionally, Reservoir's inability to secure successful songwriters or recording artists, as well as its struggle to compete with other firms in catalog acquisition pricing, further contribute to a negative outlook for the company.