Pivotal Research analyst Jeffrey Wlodarczak reiterated a Buy rating on Spotify yesterday and set a price target of $875.00.
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Jeffrey Wlodarczak has given his Buy rating due to a combination of factors including Spotify’s solid performance in the third quarter and its future growth potential. The company reported a net increase in monthly active users that exceeded expectations and maintained a steady growth in premium subscribers. Despite a slight underperformance in advertising revenue, Spotify’s engagement per user is on the rise, and revenue growth is consistent, with gross profit margins surpassing forecasts.
Wlodarczak also highlights that Spotify’s ability to implement price increases without significantly affecting subscriber growth is a positive indicator of its market strength. The company’s strategic enhancements and potential for further product diversification, such as incorporating long-form video content and improving advertising, are expected to boost user engagement and monetization. These factors, coupled with the belief that Spotify has a competitive edge in the global audio streaming market, underpin the Buy rating.
In another report released yesterday, DZ BANK AG also upgraded the stock to a Buy with a $735.00 price target.