Spotify Technology shares got a buy rating from Jefferies, as the latter initiated coverage of the audio streaming company. Jefferies set a $360 price target.
Jefferies analyst Andrew Uerkwitz wrote in a note that Spotify will company will probably become “the primary audio platform for creators.”
Uerkwitz mentioned that Spotify’s dominance would lead to more loyal users and a “longer tail of growth/margin expansion”. The analyst also indicated that new technologies are less likely to disrupt Spotify’s business model.
According to Uerkwitz, the company’s shares have substantial long-term opportunity and is trading at a discount to other content platform companies.