Deutsche Bank raised the firm’s price target on Spotify to $400 from $340 and keeps a Buy rating on the shares. The company reported “very strong” Q1 results and a “very encouraging” Q2 outlook, which will lead to materially higher consensus gross margin and EBIT estimates, the analyst tells investors in a research note. The firm says sizable gross margin beat builds conviction in Spotify achieving its investor day target of 30% gross margins on the earlier side of the fiscal 2025-2027 range.
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