Evercore ISI analyst Mark Mahaney reiterated an Outperform rating and $340.00 price target on Spotify (NYSE: SPOT).

The analyst comments "Our View: This is the most material price increase Spotify has done in the U.S. (and bolder than our assumptions in our recent note $1 For $1B?), both in terms of the degree of price increase ($3 price increase on the high end, vs. $2 historically), putting its Individual Plan price $1 ahead of peers like Apple Music, as well as the fact that it’s a straight-up price hike with no lower-priced “Basic Tier” as a buffer. If this price increase is carried out more broadly across the world, it could introduce greater Churn impact than last July’s 50-country price hike. That said, this may well be a signal of Spotify’s confidence in its value proposition, competitive position, and pricing power, esp. as the prior price increases resulted in better-than-expected Churn impact."

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 $296.78 yesterday.