Monness analyst Brian White has maintained their neutral stance on SPOT stock, giving a Hold rating on June 30.
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Brian White has given his Hold rating due to a combination of factors affecting Spotify’s current market position. Despite Spotify’s impressive stock performance, which has seen significant gains in recent years, the company faces several challenges that temper enthusiasm for a more bullish stance. These challenges include intense competition in the streaming market, thin profit margins, and a slower growth rate in monthly active users compared to previous years.
Additionally, while Spotify is making strides in monetizing its digital advertising business and has opportunities for growth through price increases and legal victories, these factors are balanced by the company’s high valuation and a challenging macroeconomic environment. The projected steady revenue and subscriber growth, along with strategic initiatives, suggest potential, but the overall risk factors lead to a cautious Hold recommendation.
In another report released on June 30, Citi also maintained a Hold rating on the stock with a $780.00 price target.