Spotify, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Jason Bazinet from Citi maintained a Buy rating on the stock and has a $620.00 price target.
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Jason Bazinet has given his Buy rating due to a combination of factors, even as Spotify reverses some of its recent pricing moves. He views the rollback of the “Premium Lite” and price cuts on “Premium Standard” and “Student” plans as evidence of high price sensitivity and softer subscriber additions in a handful of emerging markets, but notes that these geographies account for only a small fraction of overall paying users and revenue.
Bazinet therefore sees the negative implications of the pricing reset as contained, while the broader investment thesis remains intact. With an expected share price return of about 39.3% and the price target maintained at $620, he believes Spotify’s long-term growth and monetization potential justify a Buy rating despite near-term noise around product tiers and regional pricing experiments.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $685.00 price target.