Spotify: BofA, more optimistic, raises target price

(CercleFinance.com) - Bank of America announced on Wednesday that it had raised its target price for Spotify shares from $265 to $315, while reiterating its Buy recommendation on them.


In a research note, the broker hails the restructuring initiated by the online music giant since the beginning of 2023, which has enabled it to drive a favourable trajectory in terms of margins and cash flow.

BofA says that this inflection point - which has supported the share price over the past 18 months - should continue, thanks to the arrival of new subscribers, price increases, the development of advertising revenues associated with podcasts and the more general improvement in its operating leverage.

In addition, the analyst adds that the company's improved cash flow, combined with a solid balance sheet, should pave the way, following the forthcoming appointment of a new CFO, for a share buyback program that could act as a catalyst as early as the second half of the year.


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.