KeyBanc raised the firm’s price target on Spotify (SPOT) to $520 from $490 and keeps an Overweight rating on the shares. The firm views Q3 results as reinforcing its thesis that product innovation is driving revenue growth, unit economics are improving, and margins and free cash flow are inflecting. Importantly, management continues to stress operational discipline, which KeyBanc believes will translate to Spotify moving closer to 20% revenue growth over time and ongoing margin improvement.
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