Spotify: Jefferies upgrades recommendation to buy

(CercleFinance.com) - Jefferies announced on Thursday that it had upgraded its recommendation on Spotify shares to "buy", with the price target raised from $242 to $385.


In a research note dedicated to online music, the research firm is positive on the sector as a whole, from Spotify to UMG and WMG, anticipating a rise in their share prices over the coming years.

In its view, Spotify is in a position to raise its subscription prices again, which should enable it to grow sales by 15% a year.

Jefferies also expects operating profit to triple over the next three years as a result of gross margin improvement and ongoing cost discipline.

The analyst also backs up his optimism with investments in the platform, audiobooks, bundles and podcasts, leading him to make Spotify his "top pick" in the sector.

The teams at UBS, who are Buy on the stock, upgraded their target from $375 to $400, judging that the Swedish group was in a position to end the 2024 financial year with a gross margin in excess of 30%.

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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.