TD Cowen analyst Doug Creutz reiterated a Hold rating on Spotify today and set a price target of $525.00.
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Doug Creutz’s rating is based on Spotify’s recent financial performance and future outlook. The company reported third-quarter results that slightly exceeded expectations, with revenue and gross margin figures coming in above estimates. However, despite these positive results, there are concerns about the softness in advertising revenue and the impact of foreign exchange rates, which have been a headwind.
Creutz also noted that while there is an increase in average revenue per user (ARPU) expected in the coming quarters, the current premium ARPU has seen a decline due to price increases being offset by market shifts and currency fluctuations. Additionally, the company’s guidance for the fourth quarter reflects only modest benefits from market-specific price increases and continued challenges in advertising revenue. These factors contribute to the decision to maintain a Hold rating, suggesting that while there are positive elements, there are also risks that warrant caution.
In another report released today, Citi also maintained a Hold rating on the stock with a $750.00 price target.