Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Ulta Beauty (ULTA) initiated with a Buy at UBS. 2. uniQure (QURE) initiated with an Outperform at Wells Fargo. 3. Micron (MU) initiated with an Outperform at RBC Capital. 4. Spotify (SPOT) initiated with a Market Perform at Wells Fargo. 5. Tocagen (TOCA) initiated with a Buy at B. Riley FBR. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.

Deutsche Bank raised the firm's price target on Spotify to $400 from $340 and keeps a Buy rating on the shares. The company reported "very strong" Q1 results and a "very encouraging" Q2 outlook, which will lead to materially higher consensus gross margin and EBIT estimates, the analyst tells investors in a research note. The firm says sizable gross margin beat builds conviction in Spotify achieving its investor day target of 30% gross margins on the earlier side of the fiscal 2025-2027 range.

HSBC analyst Joseph Thomas raised the firm's price target on Spotify to $355 from $310 and keeps a Buy rating on the shares. The company's gross profit and EBIT for Q1 came in well ahead of expectations as it executes against its strategy to minimize costs, the analyst tells investors in a research note. The firm says the guidance implies a strong step-up in margins for Q2. It is now more bullish on Spotify's ability to monetize its audiobook offering.

Loop Capital analyst Alan Gould raised the firm's price target on Spotify to $300 from $250 and keeps a Hold rating on the shares. The company's Q1 results demonstrated "impressive profit and cash flow growth", though there was a small miss on ad-supported subscriber metric, partially due to some pull forward in Q4 and an over-correction on marketing spend, the analyst tells investors in a research note. Audiobooks are also a drag on profits, but Podcasting should be profitable for the year, though it contributed a small loss to Spotify during the quarter, the firm added.

Guggenheim analyst Michael Morris raised the firm's price target on Spotify to $350 from $290 and keeps a Buy rating on the shares after the company reported Q1 results that were highlighted by the company's largest ever operating income quarter and expanding gross margin. The company's Q2 profitability guidance was "similarly strong," the analyst added in an earnings recap note.

Wells Fargo lowered the firm's price target on Ulta Beauty to $350 from $450 and keeps an Underweight rating on the shares. The category is slowing faster than anticipated as the competitive backdrop has become more challenging, the firm says. Margins will likely continue to erode as the need to invest accelerates, Wells adds.

Wells Fargo raised the firm's price target on Spotify to $400 from $310 and keeps an Overweight rating on the shares. A year ago, Spotify's long-term profitability was in question, the firm notes. Now, it's a question of "how good?" margins can get. Wells believes strong profit growth supports its 41-times EV/EBITDA multiple.