(CercleFinance.com) – Bank of America raised its price target on Spotify on Tuesday, from $370 to $380, while reiterating its buy recommendation on the stock.
In a note, the broker said it expects the online music giant’s second-quarter results to be at least in line with the group’s targets.
BofA thus indicates that it anticipates a turnover of 3.83 billion euros, against a forecast of 3.80 billion provided by the company, and a gross margin of 28.1% perfectly in line with the estimate given by Spotify.
From the broker’s point of view, the streaming platform continues to evolve on an upward trajectory in terms of activity, margins, results and cash flows, an inflection point which has also allowed it to boost its stock price over the past year and a half, he notes.
BofA also welcomes the initiatives taken to increase subscription prices, which it says illustrate the company’s confidence in its business model, as well as the launch of new specific offers and the rise in audiobooks.
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