Spotify (SPOT) stock received a slew of new analyst coverage on Wednesday following the audio streaming company’s latest earnings report. As a quick reminder, the company disappointed investors yesterday with its adjusted EPS of $1.21 on revenue of $4.78 billion. Wall Street’s estimates were for $2.49 per share and revenue of $4.77 billion. The streaming company also warned that its Q2 profits would likely miss estimates.
These earnings results prompted several analysts to update their coverage of Spotify stock. All of the analysts recorded on TipRanks have reiterated their ratings for SPOT stock, with many of them remaining bullish on the shares.
However, some of them have issued price target changes. Five-star J.P. Morgan analyst Doug Anmuth increased his price target from $640 to $670, while four-star Pivotal Research analyst Jeffrey Wlodarczak raised his from $725 to $800. On the flip side, five-star Barclays analyst Kannan Venkateshwar lowered his price target from $710 to $650, five-star Evercore ISI analyst Mark Mahaney dropped his from $700 to $650, and four-star Raymond James analyst Andrew Marok cut his from $650 to $635.
Analyst Comments
Marok discussed the reason for the price target drop in a letter to clients. He said, “While some numbers were softer than hoped, we see explanations accompanying them that do not spark longer-term worries.”
Four-star Wells Fargo analyst Steven Cahall also commented on Spotify earnings after he reiterated a Buy rating and $740 price target. The analyst stated there’s “lots ahead to drive earnings outperformance” and named SPOT stock a Top Pick.
Is SPOT Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Spotify is Moderate Buy, based on 18 Buy and nine Hold ratings over the last three months. With that comes an average price target of $661.96, representing a potential 11.37% upside for SPOT stock.
