Spotify Upgraded on Subscriber Forecast – Shares Higher

Spotify Upgraded on Subscriber Forecast – Shares Higher

Spotify Technology  (SPOT) – Get Report shares rose after Credit Suisse analyst Brian Russo raised his rating on the audio streamer to outperform from neutral and lifted his share-price target to $315 from $215.

Spotify recently traded at $253.72, up 3.6%. The shares have soared 70% year to date.

The company may exceed consensus forecasts for monthly active users and subscribers through 2021, Russo wrote in a commentary cited by Bloomberg. He boosted his subscriber projection for 2021 by 4 million to 185 million.

Spotify will benefit from exclusive podcasts, with Joe Rogan’s podcast by itself potentially generating an additional 5 million subscribers by the end of next year, Russo said. Spotify’s partnership with Russian mobile carrier MTS also should help.

Furthermore, “we now see a greater likelihood that major labels will participate in Spotify’s Marketplace and help expand gross margins, a change from our prior view” Russo said.

Morningstar analyst Ali Mogharabi expresses cautious optimism for Spotify.

Source Article