Spotify Technology (SPOT): Analyst Lowers Price Target to $800.00, Maintains "Buy" Rating

Benchmark analyst Mark Zgutowicz has maintained his "Buy" rating for Spotify Technology (SPOT) but lowered the price target from $840 to $800, representing a 4.76% change. The analyst's decision was based on evaluations of Spotify's market performance and strategic outlook. The average target price for Spotify Technology SA is $744.29, with a high estimate of $901.75 and a low estimate of $484.94, implying an upside of 16.54% from the current price.

Spotify Technology (SPOT) has seen a significant shift in analyst opinions following its latest earnings report. Benchmark analyst Mark Zgutowicz has maintained his "Buy" rating for the stock but lowered the price target from $840 to $800, a 4.76% reduction. This decision was based on an evaluation of Spotify's market performance and strategic outlook [3].

The average target price for Spotify Technology SA is $744.29, with a high estimate of $901.75 and a low estimate of $484.94, suggesting an upside of 16.54% from the current price [3]. The recent earnings report indicated that Spotify exceeded expectations in terms of Monthly Active Users (MAUs) and premium subscriptions but fell short on earnings due to higher social charges and a weaker dollar [2].

Spotify's Q2 report highlighted a 10% year-over-year revenue climb to $4.56 billion, which met projections when adjusted for constant currency. However, the company reported a loss per share of $0.49, down from a gain of $1.33 a year ago, primarily due to rising social charges and higher taxes on employee salaries [2]. Despite this, free cash flow jumped 43% to a Q2 record, signaling strong financial health.

Analysts still give the stock a "Moderate Buy" rating, with a 12-month price target of $718.90, representing nearly 15% upside from current levels [2]. The company's long-term fundamentals, such as its booming user base and surging free cash flow, remain attractive, presenting a potential buy-the-dip opportunity for risk-tolerant investors.

References:
[1] https://finance.yahoo.com/news/look-intrinsic-value-spotify-technology-120024641.html
[2] https://mybigplunge.com/soundplunge/music-streaming/spotify/spotify-stock-plummets-is-this-the-perfect-buy-the-dip-moment-or-a-red-flag/
[3] https://www.alphaspread.com/market-news/earnings/spotify-shares-fall-after-posting-surprise-loss-and-lower-outlook