Spotify pops as Wells Fargo upgrades on potential for 'more profitable company' than believed by SeekingAlpha
Spotify $SPOT shares rose on Wednesday after investment firm Wells Fargo upgraded the streaming company, noting the Daniel Ek-led Spotify laid out a vision at its investor day for a more profitable company than initially believed.
Analyst Steven Cahall raised his rating to equal weight from underweight and raised the price target to $124 from $101, noting that the plans laid out at last week's investor day to boost margins, subscribers and revenue were impressive.
"Given the strength in user and revenue growth we're willing to concede some margin expansion opportunity, and give management time to execute," Cahall wrote in a note to investors, while also noting the firm increased the valuation of Spotify's (SPOT) customer lifetime value to €40 from €32.
With all that said I would be cautious today to do Fed speaking and most likely increase in interest rates