On Nov 14, major Wall Street analysts update their ratings for $Spotify Technology (SPOT.US)$, with price targets ranging from $435 to $540.
Morgan Stanley analyst Benjamin Swinburne maintains with a buy rating, and adjusts the target price from $430 to $460.
Goldman Sachs analyst Eric Sheridan maintains with a buy rating, and adjusts the target price from $430 to $490.
BofA Securities analyst Jessica Reif Ehrlich maintains with a buy rating, and adjusts the target price from $430 to $515.
Deutsche Bank analyst Benjamin Black CFA maintains with a buy rating, and adjusts the target price from $440 to $500.
Wells Fargo analyst Steven Cahall maintains with a buy rating, and maintains the target price at $520.
Furthermore, according to the comprehensive report, the opinions of $Spotify Technology (SPOT.US)$'s main analysts recently are as follows:
Analysts note that Spotify delivered a 'very strong' Q3, with its gross margin, operating income, and free cash flow surpassing expectations. After the company disclosed Q3 results and Q4 projections, forecasts for the 2024 operating income were raised, anticipating an 'extraordinary year on margins'.
The recent Q3 outcomes and Q4 forecasts for Spotify demonstrate a continuation of the year's positive trends, with ARPU growth, gross margins, and EBIT/FCF surpassing expectations. Following several quarters of lackluster MAU net additions, there was a noticeable uptick in growth during Q3, with the Q4 outlook also exceeding forecasts. It is anticipated that Spotify will surpass 700M MAUs by 2025.
Following the Q3 report, the sentiment towards Spotify has become increasingly positive, anticipating a boost in the shares with the company's anticipated addition to the MSCI World Index on November 25. The opinion reflects that Spotify continues to be a top pick.
Post-earnings, Spotify's trajectory for margin expansion is observed to have several driving factors that could influence its growth leading into 2025.
The company delivered a robust quarter, slightly surpassing subscriber expectations, while its profit and notably free cash flow, were significantly above the anticipated figures and consensus estimates. Spotify has achieved the lower spectrum of its 30%-35% gross margin goal and is projected to reach GAAP profitability within this year.
Here are the latest investment ratings and price targets for $Spotify Technology (SPOT.US)$ from 16 analysts:
Note:
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