Spotify Stock Has 26% Upside, According to 1 Wall Street Analyst
Spotify Technology (NYSE: SPOT) reported strong earnings last week. Paying subscribers increased by 14%, monthly active users rose 19%, and revenue gained 20% year over year. Perhaps best of all, Spotify reported an operating profit for the quarter -- only 4.6%, but still better than last year's negative margins. And free cash flow (FCF) roughly quadrupled to $207 million.
So it's probably no great surprise that J.P. Morgan urged investors to buy Spotify stock on Wednesday, predicting the stock will go to $365.
The investment bank had nothing but kind words for the streaming music company this week, citing growth trends in the music, marketplace, and advertising segments. It also praised Spotify for getting its costs under control, "helping to drive significant operating income growth," as The Fly noted Wednesday.
Source Fool.com
