Wolfe Research analyst Zach Morrisey upgraded Spotify to Outperform from Peer Perform with a $190 price target. The analyst assumed coverage, citing three points to the firm’s rating change: a path for top-line acceleration; steady margin expansion; and potential for sustained upside revisions to Street estimates over the next roughly 12 months. Risks to the Outperform rating include Spotify’s lack of valuation support and potential slowdown in subs growth, the analyst tells investors in a research note.
Published first on TheFly
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