Spotify upgraded to Buy from Neutral at Redburn

Redburn analyst Nick Delfas upgraded Spotify to Buy from Neutral with a new fair value estimate of $140 per share. The firm forecast gross margins of 26.7% in 2023 and 30.4% in 2026, which are each higher than consensus, supported by waning headwinds from investments, publishing royalty increases and marketplace growth. Reburn also said it expects a "sharp slowdown" in hiring and marketing cost cuts along with a scaling of other costs and expects subscribers from emerging markets to offset slowing growth from developed markets.