BofA raised the firm’s price target on Spotify (SPOT) to $900 from $700 and keeps a Buy rating on the shares. The firm, which believes Spotify is at an inflection point in profitability and free cash flow, lowered its Q2 revenue forecast to EUR 4.25B from EUR 4.32B, “entirely related to currency moves,” but maintains its gross margin forecast of 31.5%. The firm, which raised its multiple, notes that its newly-applied multiple represents “a slight discount” to the current multiple for Netflix (NFLX), and added that it believe there is a likelihood of capital returns to be announced by Spotify in the months ahead.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on SPOT:
- Spotify price target raised to $840 from $725 at Guggenheim
- Senators call for FTC investigation into Spotify bundled subcriptions
- Spotify price target raised to $900 from $800 at Pivotal Research
- Spotify price target raised to $750 from $650 at Evercore ISI
- Google Cloud suffered outage on Thursday, TechCrunch reports