Spotify (NYSE:SPOT) stock is on the move Tuesday after KeyBanc analyst Justin Patterson released a letter covering the company.
This letter saw the KeyBanc analyst upgrading SPOT stock from its previous sector weight rating to a new overweight one. That’s a bullish stance compared to the analyst consensus of hold. That comes from 13 buy, nine hold, and three sell ratings.
That bullish rating from Patterson also comes with a strong price target for SPOT stock. The analyst set his price for Spotify shares at $340 each. That’s well above the consensus price target of $303.67 per share. It also represents a potential upside of about 36.5% from its closing price on Friday.
So what exactly has KeyBanc analyst Justin Patterson taking such a bullish stance on SPOT stock? Here’s a portion of his letter to investors below, as cited by CNBC.
“Spotify appears to have added ~22.3M new subscribers vs. YouTube’s ~15M over the same period. Said differently, Spotify may be on pace to add ~50% more new subscribers than YouTube Premium. This feat is more impressive when one considers Spotify’s subscriber base was materially larger than YouTube’s, and that Spotify pulled back on marketing in certain geographies like India in 2Q21.”
Today’s news also has SPOT stock seeing a decent amount of trading. As of this writing, more than 1 million shares of the stock have changed hands. That’s getting closer to the company’s daily average trading volume of about 1.5 million shares.
SPOT stock was up 3.3% as of Tuesday afternoon.
There’s more of the latest stock news below!
We offer up daily coverage of the stock market and today is no different! A few stories worth checking out include IronNet (NYSE:IRNT), Camber Energy (NYSEAMERICAN:CEI), and Clover Health Investments (NASDAQ:CLOV) gaining today. You can find out why at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.