TECH - Spotify's Long-Term Growth and Pricing Power Set to Boost Revenue: Analyst | Benzinga
KeyBanc analyst Justin Patterson reiterated an Overweight rating on Spotify Technology SA (NYSE:SPOT) with a price target of 410, up from $400.
Patterson updated his model and framed vital factors to watch ahead of the print.
Given recent pricing changes, the analyst noted that the consensus may be too aggressive on third-quarter Premium Subscriber net adds.
While Patterson is mindful that near-term net add guidance can weigh on the stock, he noted that this misses the bigger picture.
The consensus appears too conservative on 2025 – 2026 revenue growth, gross margin, and operating margin, and valuation remains favorable for a consumer staple with pricing power, as per the analyst.
The analyst raised his 2024, 2025, and 2026 revenue by ~1% annually.
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Patterson now expects 15.6 billion euros, 18.3 billion euros, and 20.9 billion euros, reflecting higher Premium revenue from pricing and plan ...