Benzinga | Nov 1, 2021 11:29AM EDT

Why Are Spotify Shares Trading Higher Today?

* Bernstein analyst Todd Juenger upgraded Spotify Technology SA (NYSE:SPOT) to Market Perform from Underperform as new industry data drives an increase in his global market forecast for music streaming.

* Multiplied against an increased forecast for long-term Gross Margins, supported by evidence in Q3 results, raises the analyst's probability-weighted target price to $280, which is now in line with the market price.

* Spotify reported third-quarter FY21 revenue growth of 27% year-on-year to (euro)2.5 billion, helped by advertising strength.

* Spotify raised Q4 revenue outlook from (euro)2.48 billion-(euro)2.68 billion to (euro)2.54 billion - (euro)2.68 billion.

* Price action: SPOT shares traded higher by 3.26% at $298.82 on the last check Monday.