Spotify price target raised to $430 from $405 at Benchmark

Benchmark analyst Mark Zgutowicz raised the firm’s price target on Spotify to $430 from $405 and keeps a Buy rating on the shares. The company’s Q2 free cash flow outperformance “marks a meaningful inflection for the shares” and this step-function improvement reflects continued opex and Premium and Ad-Supported gross profit leverage, the analyst tells investors in a post-earnings note. The firm argues that Spotify’s pricing power and subsequent disciplined cost management provides a runway for continued free cash flow momentum.