Spotify: stock up as BofA further raises TP
(CercleFinance.com) - On Tuesday Bank of America raised its target price for Spotify shares from $370 to $380 (cp: $315.
5, +0.5%), while reiterating its buy recommendation on the stock.
The broker said it expected the online music giant's Q2 results to be at least in line with the targets set by the group.
BofA anticipates sales of E3.83bn, compared with the company's forecast of E3.80bn, and a gross margin of 28.1%, perfectly in line with Spotify's own estimate.
The broker believes that the streaming platform is continuing to improve its sales, margins, results and cash flow, a turnaround that has boosted its share price over the past 18 months, it points out.
BofA also praises the initiatives taken to increase subscription prices, which illustrate the company's confidence in its business model, as well as the launch of new specific offers and the ramp-up in audio books.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
5, +0.5%), while reiterating its buy recommendation on the stock.
The broker said it expected the online music giant's Q2 results to be at least in line with the targets set by the group.
BofA anticipates sales of E3.83bn, compared with the company's forecast of E3.80bn, and a gross margin of 28.1%, perfectly in line with Spotify's own estimate.
The broker believes that the streaming platform is continuing to improve its sales, margins, results and cash flow, a turnaround that has boosted its share price over the past 18 months, it points out.
BofA also praises the initiatives taken to increase subscription prices, which illustrate the company's confidence in its business model, as well as the launch of new specific offers and the ramp-up in audio books.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.