Spotify price target lowered to $800 from $840 at Benchmark

Benchmark analyst Mark Zgutowicz lowered the firm’s price target on Spotify (SPOT) to $800 from $840 and keeps a Buy rating on the shares. Yesterday’s stock weakness stems from implied weak ARPU guidance and advertising results, according to the analyst, who expects gross margin trends to remain otherwise stable in the second half after the company’s Q3 gross margin was guided 40 basis points below consensus, largely reflecting a once-a-year sequential regional regulatory charge.