By Analyst Report Upgrades Spotify Stock
Spotify Technology stock experienced a surge on Thursday following an optimistic analyst report that praised the firm’s strong performance and future potential in the audio-streaming-services industry.
Jeffrey Wlodarczak, an analyst at Pivotal Research Group, upgraded Spotify stock from Hold to Buy. He also raised the price target from $170 to $265. This increase implies a significant growth of 40% from the previous closing price of $188.71.
Spotify Emerges Victorious in Audio-Streaming Content Competition
In a research note published on Thursday, Wlodarczak highlighted the success of Spotify in the digital audio-streaming content war. He expressed confidence in the company’s ability to sustain solid growth in both user base and average revenue per user.
These positive developments have contributed to Spotify’s remarkable performance throughout 2023, with the stock having already surged 139% thus far.
Focus on Financial Discipline Amid Challenges
In recent weeks, Spotify has faced challenges related to interest rates and costs, resulting in the layoff of 1,500 employees. Despite these obstacles, Wlodarczak maintains a bullish stance on Spotify.
He believes that the company’s commitment to financial discipline, coupled with higher forecasted earnings before interest, taxes, depreciation, and amortization/free cash flow in the medium to long term, will bolster its success.
Upgraded Outlook Prompts Stock Rise
The positive analyst report has already had a noticeable impact on Spotify stock, which rose by 2.5% on Thursday, reaching $193.37.
It remains to be seen whether Spotify can continue its remarkable growth in the coming months and hold its dominant position in the audio-streaming-services market.
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