Technology (NYSE:SPOT) price target was raised at both Wells Fargo and KeyBanc in notes on
Friday assessing the company's recent performance.
At Wells Fargo,
analysts raised the price target to $250 from $180, maintaining an Overweight
rating on the stock.
The analysts told
investors that it has emerged even more bullish after digging deeper into its
market share, cost cuts and margin drivers are starting to fire on all
cylinders. Our new $250 target is a 20% discount to NFLX on EV/GP, and we like
the LT margin story," the analysts wrote.
analysts raised the price target on Overweight rated Spotify to $205 per share.
They said the firm
has raised its Spotify 2024E operating profit forecast from €59 million (€1 =
$1.123) to €84 million, reflecting more progress on cost savings and gross
"For 2Q23, we
expect subscribers come in at 218M (1M above Street), with gross margin at
least 25.5% (in line)," they added. "For 3Q23, we expect subscribers
come in at 223M-224M (in line to above Street), with gross margin at least
25.9% (in line)."
For Further Reading “Spotify Shares Are Gaining In
Why the SPOT Weekly
Options Trade was Executed?…..
Technology (NYSE:SPOT) shares gained nearly 3% premarket today after Wolfe
Research upgraded the company to Outperform from Peer perform with a price
target of $190.00.
change is based on several factors, including
potential for accelerated top-line growth,
- a steady
expansion of margins, and
likelihood of sustained positive revisions to Street estimates over the next 12
eying a more expensive subscription option likely to include high-fidelity
audio to drive more revenue and appease investors.
"Supremium," the new tier will be Spotify's most expensive plan and
likely offer a HiFi feature it first announced it was working on in 2021.
its current "Premium" tier, Spotify will offer subscribers expanded
access to audiobooks through a specific number of hours free per month or a
particular number of titles. There will be an option to purchase more.
The SPOT Weekly
Options Trade Explained.....
** OPTION TRADE: Buy SPOT JUL
14 2023 160.000 CALLS - price at last close was $3.80 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the SPOT Weekly Options (CALL) Trade on Wednesday, June 21, 2023, for $3.03.
Remaining SPOT Weekly Options contracts on Friday, July 14, 2023,
for $17.00; a
potential profit of 461%.
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Where To Now?
Tech stocks have made a big comeback in the
first half of 2023 after a rough 2022.
Cost cutting has been a theme in tech, and
Spotify has announced layoffs to reduce costs and focus on the business. The
cuts seem to be both necessary and opportunistic.
All of the tech industry has been helped by an economy that's better
than most economists predicted to start the year.
Putting this all together and you get a
market that's much more bullish on tech than it was just a few months ago.
Optimism has clearly returned to the market.
Spotify has increased revenue by 15% over the past two years, while their
stocks were down 35%.
Strong results in the second quarter and
improving guidance for the second half of the year is very likely for Spotify.