Spotify's (NYSE:SPOT) price target was raised at both Wells Fargo and KeyBanc in notes on Friday assessing the company's recent performance.
At Wells Fargo, analysts raised the price target to $250 from $180, maintaining an Overweight rating on the stock.
The analysts told investors that it has emerged even more bullish after digging deeper into its SPOT thesis.
"MAU growth, market share, cost cuts and margin drivers are starting to fire on all cylinders. Our new $250 target is a 20% discount to NFLX on EV/GP, and we like the LT margin story," the analysts wrote.
At KeyBanc, analysts raised the price target on Overweight rated Spotify to $205 per share.
They said the firm has raised its Spotify 2024E operating profit forecast from €59 million (€1 = $1.123) to €84 million, reflecting more progress on cost savings and gross margin.
"For 2Q23, we expect subscribers come in at 218M (1M above Street), with gross margin at least 25.5% (in line)," they added. "For 3Q23, we expect subscribers come in at 223M-224M (in line to above Street), with gross margin at least 25.9% (in line)."