Spotify price target raised to $170 from $160 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Spotify to $170 from $160 and keeps an Overweight rating on the shares. The analyst says Spotify continues to demonstrate its "strong position with consumers and ability to compete effectively against larger tech platforms." Accelerating engagement is another trend that should reinforce confidence that last year’s record monthly active user growth and this year’s accelerating Premium net additions growth was not entirely a function of elevated marketing spend, the analyst tells investors in a research note. The firm says Spotify’s gross margin expansion "starts now" as its spending growth is flattening out.