Research analysts at Guggenheim have lowered their price target for Spotify Technology (NYSE: SPOT) from $800.00 to $750.00. This adjustment was detailed in a report released on Thursday, November 4, 2023, where the firm maintained a “buy” rating on the stock. The new price target indicates a potential upside of approximately 32.13% based on Spotify’s previous closing price.
Other financial institutions have also provided insights into Spotify’s stock performance. On December 5, 2023, Erste Group Bank downgraded its rating from “buy” to “hold.” Conversely, Benchmark raised its price target from $800.00 to $860.00 while continuing to endorse a “buy” rating. Argus initiated coverage on Spotify with a “buy” rating and a price objective set at $845.00.
JPMorgan Chase & Co. also increased its price target for Spotify from $740.00 to $805.00, giving the stock an “overweight” rating. DZ Bank upgraded its stance from “hold” to “strong-buy” on November 4, 2023. Currently, two analysts rate the stock as a Strong Buy, while twenty-three have issued a Buy rating, and nine have assigned a Hold rating. According to MarketBeat.com, Spotify has a consensus rating of “Moderate Buy” and an average target price of $758.57.
Spotify’s Recent Earnings Report
In the most recent quarterly earnings report, Spotify announced earnings per share (EPS) of $3.83, significantly surpassing analysts’ expectations of $1.87 by $1.96. The company generated revenue of $5.01 billion, exceeding predictions of $4.23 billion. Compared to the same quarter last year, Spotify’s revenue increased by 7.1%, highlighting its ongoing growth in a competitive market.
The company’s return on equity stood at 21.68%, with a net margin of 8.46%. Analysts forecast that Spotify will achieve an EPS of 10.3 for the current fiscal year.
Institutional Investment Trends
Recent movements among institutional investors indicate a strong interest in Spotify. Notably, Joel Isaacson & Co. LLC increased its holdings by 1.0% during the second quarter, owning 1,551 shares valued at $1,190,000 after acquiring an additional 15 shares. Similarly, Ignite Planners LLC raised its stake by 2.4%, owning 637 shares worth $489,000.
Stonekeep Investments LLC and Moody National Bank Trust Division also increased their positions, with the latter holding 2,931 shares valued at $2,249,000. Quadcap Wealth Management LLC showed a 5.7% growth in its holdings during the third quarter, increasing its position to 295 shares valued at $206,000. Overall, institutional investors own approximately 84.09% of Spotify’s stock, reflecting confidence in its growth potential.
As Spotify continues to evolve in the digital audio streaming landscape, these adjustments by financial analysts and institutional investors will be closely monitored by market participants. The company, founded in Sweden by Daniel Ek and Martin Lorentzon in 2006, has become a leading player in the music streaming sector, offering both a free ad-supported tier and a premium subscription service.
