Spotify price hike sooner, smaller than expected, says Citi

After Spotify (SPOT) announced a price hike in the U.S., Estonia, and Latvia of $1 per month, effective in February, Citi analyst Jason Bazinet said the hike takes effect one month earlier than the firm expected, but adds that investors who were anticipating a $2 price hike “may be disappointed.” The firm, which still sees scope for Spotify to announce additional price hikes in Canada, New Zealand, and Ireland given the free trial extension in these markets along with the U.S., has a Neutral rating and $650 price target on Spotify shares, which are down 3.5% to $510.39 in afternoon trading.