Analyst Jason Bazinet from Citi maintained a Hold rating on Spotify and keeping the price target at $750.00.
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Jason Bazinet has given his Hold rating due to a combination of factors related to Spotify’s recent performance and future outlook. Despite Spotify’s third-quarter results surpassing expectations in terms of revenue, gross margins, and operating income, Bazinet remains cautious. The company’s premium subscriber growth and monthly active users were largely in line with expectations, and while the fourth-quarter guidance for gross margins and operating income is above consensus, there are some concerns.
One such concern is the company’s revenue guidance for the fourth quarter, which is slightly below market expectations. Additionally, while the expected increase in monthly active users is promising, the anticipated growth in premium subscribers is slightly below what the market anticipated. These mixed signals contribute to Bazinet’s decision to maintain a Hold rating, suggesting that while there are positive aspects to Spotify’s performance, there are also uncertainties that warrant a cautious approach.
According to TipRanks, Bazinet is a 5-star analyst with an average return of 18.9% and a 65.08% success rate. Bazinet covers the Communication Services sector, focusing on stocks such as Spotify, AppLovin, and Clear Channel Outdoor.