Spotify Technology S.A. (SPOT) shares surged 5.05% in intraday trading, rebounding from Tuesday's steep post-earnings decline. The music streaming giant's stock is showing resilience as several Wall Street analysts reaffirm their positive outlook on the company's long-term growth prospects.
Despite reporting a surprise loss and revenue below expectations in its recent quarterly results, many analysts remain optimistic about Spotify's future. UBS maintained its Buy rating on the stock, adjusting its price target to $850 from $895. Similarly, J.P. Morgan reiterated a Buy rating with a $740 price target, while Wells Fargo raised its target to $750 from $740.
Analysts point to Spotify's continued strong user growth and potential for pricing power as key factors supporting their bullish stance. BofA Securities analyst Jessica Reif Ehrlich noted, "We remain positive on the long-term SPOT opportunity and would use share weakness as a particular buying opportunity." The company's ability to attract and retain subscribers, even in an uncertain economic environment, is seen as a testament to its strong market position and diverse content offerings, including music, podcasts, and audiobooks.
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