Spotify price target lowered to $600 from $800 at Citizens

Citizens lowered the firm’s price target on Spotify (SPOT) to $600 from $800 and keeps an Outperform rating on the shares. Spotify reported strong Q1 results, but shares declined after operating income guidance came in below expectations due to increased investment in AI and compute infrastructure, the analyst tells investors in a research note. While near-term profitability guidance disappointed, the investments are viewed as strategic and growth-oriented, with early engagement data from new features supporting longer-term retention and monetization potential across its expanding audio ecosystem, the firm says.