Is Spotify Stock Going to $400? 1 Wall Street Analyst Thinks So.
Spotify Technology (NYSE: SPOT) reported terrific earnings last week, growing paying subscribers 14%, monthly active users 19%, and revenue 20% year over year. Spotify even flipped from a year-ago loss to a $1.05-per-share profit in the first quarter of 2024.
On Wednesday, Deutsche Bank urged investors to buy Spotify stock, and gave Spotify the highest price target of any analyst on Wall Street: $400 a share.
Key to Deutsche Bank's buy rating on Spotify was the streaming music company's confirmation that its gross profit margins are still rising, hitting 27.6% in Q1. Management hopes to hit a 30% gross profit margin sometime between 2025 and 2027, and the Q1 result was so close to that mark that it's looking at least possible Spotify will reach its goal within the next year.
Source Fool.com
