HSBC starts Spotify at buy, cites significant opportunities
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HSBC has initiated coverage of Spotify with a Buy rating and a $310 price target. The bank sees significant opportunities for Spotify beyond music, citing its active user base of 602 million. HSBC believes that Spotify's cross-selling strategy from music to podcasts and audiobooks is built on firm ground and that the company has the potential to capture a $170 billion market opportunity by 2030. The bank also highlights Spotify's potential in other revenue streams such as merchandising and ticket sales. HSBC expects Spotify to achieve operating profitability in 2024.