Wells Fargo upgraded Spotify stock to "overweight" from "equal weight"
The shares of Spotify Technology SA (NYSE:SPOT) are rallying, up 56.6% since the start of 2023, with no sign of slowing down according to Wells Fargo. The firm today upgraded the music streaming stock to "overweight" from "equal weight," with a price-target hike to $180 from $121, citing Spotify's commitment to improving its margins.
At last glance, SPOT was up 2.3% at $124.01. The stock recently broke above several long-term moving averages, with only the 320-day trendline still lingering above. Year-over-year, the equity is down 28.4%.
There's still plenty of room for optimism amongst analysts, however. Of the 32 analysts in coverage, 18 carry a "hold" or worse rating, while the 12-month consensus price target of $126.53 is just a slim premium to current levels.
Calls, meanwhile, are much more popular than usual in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SPOT's 50-day call/put volume ratio of 2.34 ranks higher than 97% of readings from the past year.
Options traders are sticking with this bullish sentiment today, as 5,514 calls have crossed the tape so far -- triple the intraday average amount -- in comparison to 1,085 puts. The weekly 2/10 130- and 125-strike calls are the most popular, with new positions being opened at both.