Spotify price target raised to $205 from $160 at Benchmark

Benchmark raised the firm’s price target on Spotify to $205 from $160 and keeps a Buy rating on the shares ahead of Spotify’s Q2 report due on July 25. The stock has appreciated by about 30% since its Q1 results showed materially better-than-expected premium sub and ad-supported MAU growth, but the stock price “continues to underappreciate” ad-supported gross margin leverage and near-to-medium term S&M leverage following “record-setting” quarterly net adds for Q4 and Q1, the analyst tells investors in an earnings preview note.