Spotify Analysts Are Falling for a Stock That Hasn’t Traded YetBy
Analysts recommend buying music-streaming stock ahead of debut
Share price a mystery until trading starts on April 3
It’s anyone’s guess what price Spotify Technology SA’s shares will trade at when they debut next week, but that hasn’t stopped analysts from jumping in with buy recommendations.
Four analysts have released bullish research on the music-streaming company this week ahead of an unusual direct listing on April 3.
Atlantic Equities LLP analyst James Cordwell and RBC Capital Markets analyst Mark Mahaney both suggested buying Spotify for its leading role in a global market. But the bulls still disagreed on a price – their targets are 38 percent apart from each other.
Without a traditional initial public offering, Spotify shares have no indicative price range. Instead, the trading price will remain a mystery until existing holders sell shares on the New York Stock Exchange. “With no shares being offered, supply seems to be the greater unknown,” MKM Partners LLC’s Rob Sanderson said in his buy-rated initiation note. “We are anticipating unusual trading dynamics in the days and weeks following the April 3 listing and are unsure how long before adequate liquidity will be established.”
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