Daiwa sees Spotify maintaining high growth, starts at Outperform

As previously reported, Daiwa initiated coverage of Spotify (SPOT) with an Outperform rating and $535 price target The pure-play audio streamer has delivered steady growth in subscribers and revenue, says the analyst, who believes Spotify can maintain its high-growth revenue trajectory based on its dominance in the high-growth audio streaming market, rollout of products like podcasts and audiobooks, steady pace in net adds of Premium and ad-supported users, a rebound in advertising revenue, price increases, entry into new verticals, and new pricing tiers and add-ons, the analyst tells investors.