(CercleFinance.com) – Spotify goes against the tide of Wall Street and manages to gain ground on Tuesday morning after UBS raised its recommendation on the online music giant from ‘neutral’ to ‘buy’ ‘.
In a note, UBS – which also increases its price target from 170 to 274 dollars – believes that the Swedish group is at a turning point in terms of improving its margins and its results for the years to come.
According to the broker, the growth in the number of subscribers, price increases and the increase in advertising revenue should enable it to improve its operating income more strongly than expected.
UBS therefore says it expects Ebitda to be 30% higher than the consensus forecasts for the period 2024-2027.
‘While it is true that investors have had difficulty valuing the company in the past due to the lack of profitability, we expect Spotify to benefit from an Ebitda now well anchored in positive territory and its level of growth compared to its peers’, he continues.
Shortly before 10 a.m. (New York time), Spotify gained around 1% while the S&P 500 index was perfectly stable.
Copyright (c) 2024 CercleFinance.com. All rights reserved.