Deutsche Bank analyst Benjamin Black upgraded Spotify Technology SA SPOT from Hold to Buy with a $180 price target. The analyst is more optimistic due to outperforming top-of-funnel metrics, 3Q gross margin guide beating consensus, and narrowed operating losses. ARPU was down 3% YoY FXN due to a product mix shift, but Black expects ARPU to improve from 3Q onward with pricing as a growth driver. Advertising on music and podcasting sides improved in 2Q and continues in 3Q. Black estimates the price increase will drive about 40bps of gross margin improvement from leverage on streaming delivery costs. He raised revenue and operating income estimates for FY24. The deceleration of FXN ARPU growth is due to the success of multi-tier account additions, with promo campaigns initially dilutive to ARPU.