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Spotify price target raised to $520 from $440 at Benchmark

Benchmark analyst Mark Zgutowicz raised the firm’s price target on Spotify (SPOT) to $520 from $440 and keeps a Buy rating on the shares. Q3 results and guidance “showcased a premium subscription business firing on all cylinders,” while Spotify’s ads business “remains caught in a brand spending melee,” the analyst tells investors in a post-earnings note. Q4 total gross margin guidance of 31.8% suggests flow thru and perhaps a bit more of the Q3 premium leverage, the analyst added.

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