(CercleFinance.com) – Bank of America announced on Wednesday that it had raised its price target on Spotify from $265 to $315, while reiterating its purchase recommendation on the stock.
In a research note, the research office welcomes the restructuring initiated at the beginning of 2023 by the online music giant, which has enabled it to drive a favorable trajectory in terms of its margins and cash flow.
According to BofA, this inflection point – which has supported the stock price over the last 18 months – should continue thanks to the arrival of new subscribers, price increases, the development of advertising revenue associated with podcasts and more general improvement in its operational leverage.
Furthermore, adds the analyst, the improvement in the company’s cash flow combined with a solid balance sheet should pave the way, following the upcoming appointment of a new financial director, for a share buyback program. which could act as a catalyst from the second half of the year.
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