BofA Bets On Spotify, Sees Scope For Share Repurchase Program Initiation After New CFO Announcement
Portfolio Pulse from Lekha Gupta
BofA Securities analyst Jessica Reif Ehrlich raised the price target for Spotify Technology S.A. (NYSE:SPOT) to $315 from $265 and maintained a Buy rating. The optimism is based on expected Q1 FY24 results in line with guidance, potential for a share repurchase program post-new CFO announcement, and sustainable share price momentum driven by subscriber growth and monetization opportunities. Adjustments were made to the first-quarter forecast and CY24 estimates, while CY25 and CY26 forecasts were raised, indicating mid-teens revenue growth.
March 20, 2024 | 6:10 pm
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BofA Securities raised Spotify's price target to $315 from $265, maintaining a Buy rating. The optimism stems from expected strong Q1 FY24 results, potential for a share repurchase program, and sustainable growth driven by subscriber and monetization improvements.
The upgrade in Spotify's price target by BofA Securities reflects a strong confidence in the company's future performance, particularly in terms of subscriber growth and monetization strategies. The potential initiation of a share repurchase program after the announcement of a new CFO is seen as a positive move that could further drive the share price. Adjustments in forecasts due to higher social costs and foreign exchange adjustments are noted, but the overall outlook remains optimistic with expected mid-teens revenue growth.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100