Is Steinway Musical Instruments a Good Investment Ahead of Its IPO?
With a summer IPO looming, we take a look at whether or not Steinway Musical Instruments is a worthwhile investment.
Nov. 8, 2022

This article can be found in the MyWallSt App as part of our Stock Club Podcast's bonus subscriber content. Sign up today for a free account and get access to dozens of expertly written articles and analyst opinion pieces every month.

Steinway is the legendary producer of the world's best pianos and is scheduled to IPO this summer at an estimated valuation of $1 to $1.5 Billion.

Steinway was established in 1853 in Manhattan by Heinrich Engelhard Steinweg (later known as Henry E. Steinway). When we talk about brand recognition, it would be difficult to get better than Steinway. It is in a world of its own, and you would hope so with its name-brand pianos costing between $60,000 and $340,000. But this price tag is supposedly justified by its superior craftsmanship, high-quality materials, and centuries of fine-tuning.

Today, 97% of concert pianists use Steinways, including big names we all know and love like Billy Joel, Elton John, Taylor Swift, and Cole Porter.

That being said, the company only produces about 3,500 Steinway pianos a year, with the rest of its sales being generated by its subsidiary brands. For pianos, this includes the Boston and Essex brands which are built in Asia to reduce costs, and are targeted at the upper-middle and middle market segment. These brands represent about 31% of Steinway's piano sales.

Beyond pianos, Steinway also controls the Conn-Selmer family of brands, a producer of band instruments.

However, I don't want you to think that Steinway is all about economical options. One of the most recent innovations that have helped it grow revenue and bolster margins is the Spirio piano. It solves the age-old question: "How do you sell a piano to someone who can't play the piano?"

Top Ten Stocks To Buy Now
Commit to your future wealth today and join 1000s of subscribers receiving:
  • New stock picked every week out of 60,000 worldwide
  • Ten Foundational stocks to hold until 2034
  • A library of 60 stocks with analysis
  • 10 year Track record of performance
By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Policy and Terms of Use.

The Home of Successful Investing.

© 2024 MyWallSt Ltd. All rights reserved.

Services

Content

Social

Company

Support

Resources

This website is operated by MyWallSt Ltd (“MyWallSt”). MyWallSt is a publisher and a technology platform, not a registered broker-dealer or registered investment adviser, and does not provide investment advice. All information provided by MyWallSt Limited is of a general nature for information and education purposes, and you should not construe any such information as investment advice. MyWallSt Limited does not take your specific needs, investment objectives or financial situation into consideration, and any investments mentioned may not be suitable for you. You should always carry out your own independent verification of facts and data before making any investment decisions, as we cannot guarantee the accuracy or completeness of any information we publish and any opinions that we publish may be wrong and may change at any time without notice. If you are unsure of any investment decision you should seek a professional financial advisor. MyWallSt Limited is not a registered investment adviser and we do not provide regulated investment advice or recommendations. MyWallSt Limited is not regulated by the Central Bank of Ireland. MyWallSt Limited may provide hyperlinks to web sites operated by third parties. Your use of third party web sites and content, including without limitation, your use of any information, data, advertising, products, or other materials on or available through such web sites, is at your own risk and is subject to the third parties' terms of use.