Benzinga | Sep 7, 2021 11:22AM EDT

Why Spotify's Stock Is Trading Higher Today

Spotify Technology SA (NYSE:SPOT) is trading higher today after Keybanc upgraded the stock and increased its price target.

Keybanc analyst Justin Patterson upgraded Spotify Technology from Sector Weight to Overweight and announced a $340 price target.

Patterson cited increasingly favorable industry dynamics underscored by recent app strength. The Keybanc analyst expects improved monetization and unit economics.

Spotify's enterprise value to subscriber discount to Sirius XM Holdings Inc (NASDAQ:SIRI) "appears too wide in the face of monetization and gross margin progress," Patterson added.

Spotify is one of the world's largest music streaming service providers, with over 150 million total listeners.

SPOT Price Action: Spotify has traded as high as $387.44 and as low as $201.67 over a 52-week period.

The stock was up 4.15% at $259.38 at time of publication.

Photo: StockSnap from Pixabay.