UBS Reiterates Buy Rating on Spotify (SPOT) Ahead of Earnings

UBS analyst Batya Levi reiterated a Buy rating and $850.00 price target on Spotify (NYSE: SPOT).

The analyst comments "We expect 3Q results to be in line with mgmt. outlook and reflect moderating FXN revenue growth due to lapping prior price increases and flat annual margins as investments in the partnership program and other features to enhance the platform continue. We expect 4Q guidance to show accelerating FXN revenue growth supported by partial help from recent price increases and a continuation of double-digit subscriber growth, while margins seasonally increase but remain flat y/y. We remain constructive on SPOT shares as we expect upcoming price increases, new tiers/product features and a ramp in advertising to support further acceleration in revenue growth while margins continue to expand."

For an analyst ratings summary and ratings history on Spotify click here. For more ratings news on Spotify click here.

Shares of Spotify closed at $645.78 yesterday.

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