Wolfe starts Spotify at Outperform, sees upside to consensus

Wolfe Research initiated coverage of Spotify with an Outperform rating and $390 price target. The firm said that, relative to the music labels, Spotify provides pure-play exposure to evergreen music streaming without hit-driven variability, artist negotiation risk, and boasts minimal capital investment intensity. The firm sees upside to consensus from more frequent pricing and higher margin verticals.