Shares of Spotify Technology SA (SPOT) are up 7% in Thursday trading after Goldman Sachs analyst Heath Terry boosted his price target on the stock to $280 from $205. His new target is higher than all those listed on FactSet. Terry is upbeat about the company's expanded emphasis on podcasts as Spotify has signed new exclusive podcast deals and improved its ability to monetize this audio content. "While there are considerable risks to this strategy given the costs associated, the underdeveloped nature of the podcast market, and challenges forecasting the financial impact to long term revenue and profit growth, we believe the optionality these efforts create leave the risk/reward in owning Spotify in a favorable position, even when accounting for its recent outperformance," he wrote. Shares have rallied more than 100% over the past three months as the S&P 500 has gained 24%. Terry argued that the company can use podcasts as a differentiator that could bring more subscribers over to the Spotify platform. He has a buy rating on the stock.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 25, 2020 10:34 ET (14:34 GMT)
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