His price target of $190 implies the stock could rally 21.2% over Tuesday's close. "The secular tailwinds driving SPOT's music business (in terms of user growth and engagement) still have plenty of runway, specifically in emerging markets." SPOT YTD mountain Spotify Morrissey's upgrade is in part due to expectations for top-line growth acceleration due to price increases and growth in advertising revenue. The company has signaled a price increase could come in the U.S. after already implementing one in international markets. He also noted Spotify should be able to show more resiliency than peers if the macro environment weakens.

---

Persons: Zach Morrissey, Morrissey, — CNBC's Michael Bloom Organizations: Wolfe Research, Spotify Locations: U.S, Europe