Spotify Technology SA shares surged Friday, with the stock moving further into record territory after a pair of analysts said the company’s move into podcasts makes them even more bullish.
“We not only see attractive monetization potential” from these deals, but they could lead to “future leverage to premium subscription pricing and label negotiations,” wrote Rosenblatt Securities analyst Mark Zgutowicz.
The podcasts “present attractive leverage characteristics to users and revenue,” he added, raising his price target to a Street-high view of $275.
Monness, Crespi, Hardt also raised its Spotify target to $275 on Friday, saying the podcasts deals offer “the opportunity for increased engagement on the platform” as well as the potential for growth in monthly active users.
Spotify shares gained as much as 7.3% on Friday and are on track for a weekly surge of more than 30%, the biggest weekly percentage gain in the company’s history.
Shares have more than doubled off a March low, and the rally is a sign that “investors are beginning to buy into Spotify’s bold podcast vision,” Monness wrote.