Piper Sandler raised the firm’s price target on Spotify (SPOT) to $450 from $330 and keeps a Neutral rating on the shares. The firm notes Spotify once again delivered profitability results and guidance ahead of expectations, with gross margin delivering significant upside. Specifically, the upside for gross margin was driven by content cost favorability. In addition, the company continues to drive operating expense efficiencies, helping to drive significant upside to operating income, Piper adds. On the MAU/ subscriber side, Spotify reversed trends seen earlier in the year, pushing MAU results and guidance slightly ahead of expectations on the back of refocused marketing and product improvements, says the firm.
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