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Spotify shares jump with analysts bullish on podcast moves
[NEW YORK] Spotify Technology 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.
The company recently announced a number of high-profile podcasts deals, including with Joe Rogan and DC Comics. There's reportedly also a pact with Kim Kardashian West.
"We not only see attractive monetisation 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 US$275.
Monness, Crespi, Hardt also raised its Spotify target to US$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 per cent on Friday and are on track for a weekly surge of more than 30 per cent, 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.