Spotify price raise report suggests estimate upside, says Morgan Stanley

Morgan Stanley says reports that Spotify Technology will raise prices again in 2024 suggest upside to estimates. The firm believes the news also reinforces its confidence in its long-term above-consensus outlook, and brings its $350 per share bull case “more into view.” Music is broadly under-monetized and Spotify’s product strength provides it unique pricing power, the analyst tells investors in a research note. Morgan Stanley keeps an Overweight rating on the shares with a $270 price target.