Truist sees expectations for Spotify subs and active users as ‘reasonable’

Truist analyst Matthew Thornton keeps his Buy rating and $115 price target on Spotify as part of a broader research note titled "Streaming Playbook Into ’23". Consensus estimates for Subs and monthly active users are "very reasonable", though revenue is a slightly high hurdle, the analyst tells investors in a research note. Thornton adds however that he sees a "tactical path higher" for the stock driven by potential pricing and cost actions, with Spotify expected to "hyper-focus" on its gross margin and operating income.