Spotify Expertise S.A. (NYSE:SPOT) is likely one of the 11 Finest International Shares to Purchase Based on Hedge Funds. On June 27, UBS elevated its value goal for Spotify Expertise S.A. (NYSE:SPOT) from $680 to $895 whereas protecting a “Purchase” ranking.
The analysis agency highlighted a number of development catalysts for the corporate. These embody Spotify Expertise S.A. (NYSE:SPOT) increasing its audiobook choices into new markets, launching new subscription tiers, growing costs, and rising promoting income.
An individual carrying headphones listening to an audio streaming service.
UBS expects these elements can assist Spotify Expertise S.A. (NYSE:SPOT) enhance monetization and preserve about 16% foreign-exchange-neutral income development by means of 2028.
The agency additionally believes that the corporate’s growing concentrate on non-music content material and value administration can additional enhance margins. UBS tasks Spotify Expertise S.A.’s (NYSE:SPOT) working margin to succeed in 20% in 2027. That is above the market consensus of 17.5%.
UBS analysts count on elevated money era from these enhancements, which might give Spotify Expertise S.A. (NYSE:SPOT) extra flexibility to return worth to shareholders by means of totally different capital allocation methods.
Spotify Expertise S.A. (NYSE:SPOT) is a Swedish firm that operates the biggest audio streaming subscription service on the earth. It presents entry to hundreds of thousands of songs, podcasts, and audiobooks by means of its platform.
Whereas we acknowledge the potential of SPOT as an funding, we consider sure AI shares supply higher upside potential and carry much less draw back threat. In the event you’re on the lookout for a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the greatest short-term AI inventory.
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Disclosure: None. This text is initially revealed at Insider Monkey.
