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Spotify's Audiobooks, Ad Growth Drive Analyst Confidence

In a recent note, analysts at Benchmark reiterated their Buy rating and increased their price target for Spotify Technology SA (NYSE: SPOT) to $340 from $330, citing the company's strong performance in the audiobooks and advertising segments.

The analysts highlighted Spotify's successful expansion into the audiobooks market, which has seen significant growth in recent quarters. The platform's ability to offer a wide range of audiobooks, including popular titles and original content, has resonated with listeners and helped drive engagement.

Furthermore, the analysts noted that Spotify's advertising business has also shown impressive growth, driven by the company's ability to attract a diverse range of advertisers and offer targeted advertising solutions. The platform's ad business has become a significant contributor to Spotify's overall revenue, and the analysts expect this trend to continue.

The analysts' confidence in Spotify's prospects is also driven by the company's strong financial performance, including its ability to generate significant free cash flow and maintain a healthy balance sheet. The company's commitment to investing in its platform and expanding its offerings has also been viewed positively by the analysts.

Overall, the analysts' note suggests that Spotify's growth in the audiobooks and advertising segments, combined with its strong financial performance, are driving analyst confidence in the company's ability to continue to deliver strong results.