Spotify price target raised to $105 from $87 at Piper Sandler

Piper Sandler analyst Matt Farrell raised the firm’s price target on Spotify to $105 from $87 and keeps a Neutral rating on the shares. In Q4, both premium subscribers and MAUs came in above expected, while March quarter guidance for the two metrics were also ahead of consensus, the firm notes. Management noted the subscriber beats were broad based across all regions, with strong momentum expected to continue in 2023. However, the bigger takeaway from the call was the messaging around efficiency and speed, particularly as it relates to spend moving forward, Piper says. Spotify appears to have placed a greater focus on these dynamics, with sentiment transitioning from growth at all costs. While the change in tone does start to remediate some of the firm’s concerns around margin expansion and spend discipline, Piper says it needs to see sustained execution over multiple quarters before getting more constructive on the name.