Bank of America on Tuesday raised its price target on Spotify from $370 to $380, while reiterating its buy recommendation on the stock.

In a note, the intermediary said it expected the online music giant's second-quarter results to be at least in line with the targets set by the group.

BofA anticipates sales of €3.83 billion, compared with the company's forecast of €3.80 billion, and a gross margin of 28.1%, perfectly in line with Spotify's own estimate.

From the broker's point of view, the streaming platform continues to evolve on an upward trajectory in terms of activity, margins, results and cash flow, an inflection point that has boosted its share price over the past year and a half, he points out.

BofA also praises the initiatives taken to increase subscription prices, which illustrate the company's confidence in its business model, as well as the launch of new specific offers and the ramp-up in audio books.

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