Spotify price target raised to $650 from $500 at Raymond James

Raymond James raised the firm’s price target on Spotify (SPOT) to $650 from $500 and keeps an Outperform rating on the shares. The company reported another above-expectations quarter with its “top of funnel funnel was very strong,” aided by the Wrapped campaign and gains as certain competitors in developing markets stepped back, the analyst tells investors in a research note. While Spotify did not get into specifics on its new Universal deal, it pointed to expectations for year-over-year gross margin growth in fiscal 2025, suggesting that the removal of the bundling benefit in the deal will have significant offsets likely beneficial to both parties, says Raymond James. It believes the business is still set up well to continue its momentum on balance for the year.