Keep an eye on Spotify (SPOT).

After dropping from about $120 to $96.08, the stock is starting to pivot higher.  All after Wells Fargo analyst Steven Cahall upgraded the SPOT stock to equal weight from underweight.  He also raised his price target from $101 to $124.

“SPOT’s recent investor day laid out a more profitable company than we have modeled historically,” Cahall said, as quoted by Barron’s. “Given the strength in user and revenue growth we’re willing to concede some margin expansion opportunity, and give management time to execute.”  For 2023, the analyst expects for SPOT to see gross profit margins of 27.1% from a previous estimate of 26.3%.

The stock was also upgraded to outperform by Raymond James’ analyst Andrew Marok.  “Spotify remains the market leader in streaming music with key competitive advantages including a global presence, best-in-class user experience, and differentiated podcasting content,” he says.

Even better, the company says revenue could increase tenfold in the coming decade.  In fact, CEO Daniel Ek says SPOT’s top line could grow to $100 billion annually over the next 10 years.

In short, weakness in SPOT may be an opportunity.