BUZZ-Benchmark trims Spotify's PT on margin concerns

Reuters01-17
BUZZ-Benchmark trims <a href="https://laohu8.com/S/SPOT">Spotify</a>'s PT on margin concerns

** Benchmark Equity Research cuts PT on streaming giant Spotify SPOT.N to $760 from $860, still implying a 21.6% upside to stock's last close; maintains "Buy" rating

** Brokerage cites higher label/wholesale costs to pressure gross margins and limit SPOT’s ability to scale non-music bundling economics

** Brokerage says a likely higher‑priced “Supremium” tier in 2026 could improve unit economics, as SPOT needs to offset subsidized audiobook usage

** Adds AI-music apps, such as Suno, are pulling engagement away from SPOT

** 30 of 40 brokerages recommend a rating of "buy" or higher, nine "hold" and one "sell"; stock has a median PT of $750 - LSEG-compiled data

** Including session's move, SPOT up 2.9% in the last 12 months

(Reporting by Pragyan Kalita in Bengaluru)

((Pragyan.Kalita@thomsonreuters.com))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment