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Spotify:Quarterly Results/2023 Q2: Difference between revisions
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== Analyst Commentary == | |||
=== Monness, Crespi, Hardt === | |||
Analyst Brian White of Monness, Crespi, Hardt expects '''Spotify to report 217M premium subscribers, up 16% and total monthly active users to grow by 23% to 532M in Q2 2023.'''<ref>https://seekingalpha.com/news/3986512-spotify-user-growth-surprisingly-strong-heading-q2</ref> | |||
"Over the past couple of quarters, Spotify has meaningfully exceeded its MAU guidance," White wrote in an investor note. "Spotify has also delivered upside in Premium Subscribers, albeit to a lesser degree than MAU." | |||
* He forecasts revenue to grow 12% year-over-year to €3.204B. | |||
* White forecasts EPS to be €0.72 per share. | |||
* He believes Spotify "is riding a favorable long-term trend" expanding its audio offerings, moving further into the ad market and improving its cost structure. | |||
* He also said that Spotify has room to raise prices. | |||
=== Wells Fargo === | |||
Wells Fargo raised Spotify price target from $180 to $250 and maintained overweight rating.<ref>https://www.investing.com/news/stock-market-news/wells-fargo-now-even-more-bullish-on-spotify-432SI-3126159</ref> | |||
"MAU growth, market share, cost cuts and margin drivers are starting to fire on all cylinders. Our new $250 target is a 20% discount to NFLX on EV/GP, and we like the LT margin story," Wells Fargo analysts wrote. | |||
=== Keybanc === | |||
-Keybanc analysts raised it's price target to $205 from $180 and maintained overweight rating. | |||
"For 2Q23, we expect subscribers come in at 218M (1M above Street), with gross margin at least 25.5% (in line)," Keybanc analysts said. "For 3Q23, we expect subscribers come in at 223M-224M (in line to above Street), with gross margin at least 25.9% (in line)," <ref>https://www.investing.com/news/stock-market-news/wells-fargo-now-even-more-bullish-on-spotify-432SI-3126159</ref> | |||
=== Wolfe Research === | |||
Analyst Zach Morrisey of Wolfe Research raised Spotify's rating from peer perform to outperform with a price target of $190. <ref>https://seekingalpha.com/news/3981360-spotify-rises-wolfe-research-upgrades-outperform</ref> | |||
The new rating is based on: (1)the potential for accelerated top-line growth, (2) a steady expansion of margins, and (3) the likelihood of sustained positive revisions to Street estimates over the next 12 months. | |||
However, he noted that are several risks to Spotify such as: (1) a potential slowdown in subscriber growth (2) declining benefits of price hikes and (3) a "lack of valuation support" using an EBITDA over free cash flow basis | |||
== References == | |||