Spotify (NYSE:SPOT) stock is moving on Wednesday following an upgrade from Wolfe Research analyst Zach Morrissey.
The Wolfe Research analyst upgraded shares of SPOT from a “peer perform” rating to an “outperform” rating. For the record, the analysts’ consensus rating for SPOT is “buy.” That’s based on 34 opinions.
To go along with that upgrade, Morrissey offers a price target of $190 per share for SPOT stock. That represents a potential 21% upside from the stock’s prior closing price. It’s also higher than the analysts’ consensus price target of $162.87 per share for the stock.
Why the Bullish Upgrade for SPOT Stock?
Here’s what the Wolfe Research analyst said in a note to clients about the music streaming company obtained by CNBC:
“From a business standpoint, there are no doubts that SPOT has significant lead over competition in the music streaming space both in terms of product capabilities and scale. The secular tailwinds driving SPOT’s music business (in terms of user growth and engagement) still have plenty of runway, specifically in emerging markets.”
Morrissey also highlights that Spotify has performed well even after the pandemic with a growing user base. Additionally, he believes the company is in a good position to resist economic weakness.
Today’s upgrade has SPOT stock seeing a little bit of movement. As of this writing, the stock is down slightly after gaining in trading earlier this morning. This comes as some 691,000 shares change hands. For comparison, the company’s daily average trading volume is about 1.5 million shares.
SPOT isn’t the only stock that we have the latest news for today!
We also have all of the other hottest stock market news traders need to read about on Wednesday! Among this is what’s going on with shares of crypto mining stocks, Cabaletta Bio (NASDAQ:CABA) stock, and VCI Global (NASDAQ:VCIG) stock today. You can catch up on all of this news at the links below!
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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.
