Phillip Securities analyst Helena Wang has maintained their bullish stance on SPOT stock, giving a Buy rating yesterday.
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Helena Wang’s rating is based on Spotify Technology SA achieving its first full year of profitability, with FY24 results meeting expectations. Revenue grew by 16% year-over-year, supported by an increase in monthly active users (MAUs) and premium subscribers, which surpassed the company’s guidance. Spotify’s gross margin also improved significantly due to reduced content costs, marking a turnaround from the previous year’s losses.
The company is expected to continue this positive trajectory by focusing on monetization strategies, such as potential price increases and the introduction of a new premium tier. Despite recent share price gains, Spotify remains an industry leader in audio streaming, with a strong subscriber base and pricing power, making it a compelling buy recommendation according to Helena Wang.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $670.00 price target.