12:06 PM EDT, 04/05/2024 (MT Newswires) -- Spotify Technology ( SPOT ) is poised to report improved profitability and top-line growth in Q1 as the company's efficiency gains and price increases play out, UBS Securities said in a Thursday note.

The investment firm estimated Spotify's ( SPOT ) revenue of $3.62 billion in Q1, with a "slight" boost from updated foreign exchange estimates and an increase in average revenue per user. UBS said it also remains upbeat on the company's margin expansion and projected Q1 gross margins to expand to 26.4%.

Spotify ( SPOT ) also continues to have margin-accretive monetization opportunities, UBS added.

Spotify Technology ( SPOT ) is set to release its Q1 results on April 23.

UBS maintained its buy rating on Spotify ( SPOT ), with a higher price target of $375 from $274.

Price: 310.15, Change: +14.18, Percent Change: +4.79