SPOT - Investors Have Warmed Up to Spotify's Q3 Outlook But Analyst Awaits Clarity | Benzinga
Piper Sandler analyst Matt Farrell reiterated a Neutral rating on Spotify Technology S.A. (NYSE: SPOT) with a price target of $150.
Heading into the Q3 print in a few weeks, Spotify is up from the August lows, significantly outperforming significant indices.
Farrell said investors have "warmed up" to the conservatism in the Q3 subscriber guidance following the disappointing net add assumptions for the quarter.
Management provided relatively conservative guidance for subscriber net adds in Q3, calling for ~4 million net adds versus ~7 million in Q3 2022.
However, it does appear investors have "warmed up" to the idea that trends in the quarter are better than feared based on his conversations. The analyst notes that the price increase only impacts one month of Q3 but will fully impact Q4. Consensus expectations ...