KeyBanc raised the firm’s price target on Spotify to $490 from $440 and keeps an Overweight rating on the shares. The firm believes Spotify’s product cycle and a moderating competitive landscape support at least 15% annual revenue growth and nearly 15% operating margin by 2026. Outside of social charges and FX, KeyBanc sees few surprises on the Q3 print – bundling adoption appears to be progressing well, and Street gross margin percentage and OM percentage for Q4 and 2025 continue to look too low.
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