Please select the second broker

Author: Alan LittleDate: 2021-09-08

Spotify (SPOT) +2.65% after KeyBanc urges investors to buy stock

Spotify (SPOT) shares traded higher on Tuesday after KeyBanc raised its rating to overweight and said that the streaming service is now a great option for investors.

Spotify (SPOT) shares eased 2.65% higher after US stock markets reopened on Tuesday following a bullish reappraisal by KeyBanc Capital, which cited the music streaming service’s “compelling” valuation.

Analyst Justin Patterson believes that industry dynamics have shifted in Spotify’s favour during the last 12 months amid a marked rise in net subscribers and the strength of its podcast offerings.

Patterson admits that he would not have advised investors to buy into SPOT previously, but says that the time is now right to jump on board after a decline in share price this year.

Several factors are currently in Spotify’s favour, including its strength when compared to YouTube Premium, the latter of which is only expected to have added 15 million net subs compared to Spotify’s 22 million over the same period.

The Swedish company’s streaming app has also soared to the top of download charts in more countries during the latest quarter, and it could soon benefit from commission-based changes to Apple’s (AAPL) App Store.

Finally, Patterson believes that Spotify is viewed as the de-facto music platform, which gives it similar subscriber elasticity to Netflix (NFLX).

In a note, he added: “When coupled with favorable app trends and a more solid competitive position, we believe Street 2022-2023 revenue and gross profit forecasts appear too conservative.”

Patterson followed up by hiking his rating from sector weight to overweight, and setting a new $340 price target.

Spotify stock has slipped 20.9% since 1st January, but there were modest gains on Tuesday as it rose 2.65% to $255.65 by early afternoon on the New York Stock Exchange.

Shares are now changing hands for around $50 more than the 14-month low recorded in mid-August.

Scam Brokers, Broker Complaints

Are you aware of a scam broker or want to make a broker complaint?

We want our site users to find good brokers to trade through and to be warned off bad brokers. We encourage you to use our complaints tool to let us know about your experiences.

We have categorised the common complaints to make it easier for you and we have provided some guidance on what you may want to try before submitting a complaint, if our suggestions do not provide you with a resolution then by submitting a complaint, our team will attempt to take up your case with the relevant Broker and if needed, submit a formal report to the regulators.

We use the information you give us to decide if we want to continue to promote a broker on our site.

Your scam broker complaint not only helps you, it helps others and it helps us determine if we continue to support the broker.