Spotify price target raised to $390 from $330 at Pivotal Research

Pivotal Research raised the firm’s price target on Spotify to $390 from $330 and keeps a Buy rating on the shares. The increased target is primarily by higher premium and to a lesser extent advertising supported average revenue per user forecasts, the analyst tells investors in a research note. Spotify is poised to see a “dramatic acceleration in monetization in 2024 highlighted by a massive ramp in free cash flow,” says the firm. Pivotal says that given what appears to be faster than anticipated price hikes, based on press reports, the company’s monetization pace appears to be accelerating.