© Reuters Truist sees Spotify (SPOT) Q2 consensus as ‘very reasonable’
The Spotify (NYSE:) price target was raised to $170 from $154 at Truist on Tuesday, with the firm’s analysts reiterating a Buy rating on the stock.
They told investors in a note that Spotify’s Q2 consensus is “very reasonable” while Q3 is mixed and dependent on pricing and timing. Spotify will report earnings for its latest quarter on July 25.
On monthly active users, the analysts stated: “We view 2Q-3Q expectations as very reasonable (see risk as being to the upside) based on: 1) our read of mobile app download data (see pages 3-4); 2) our read of past seasonality; 3) Resso [ByteDance, Private] (India, Indonesia, Brazil) shuttering its free ad-supported tier.”
They said the firm also views subscriptions and revenue as reasonable while operating income is seen as “very reasonable.”
“We view 2Q expectation as very reasonable (expect higher social costs, per stock price appreciation intra-quarter, to be more than offset by 6/7 ~200 headcount reduction and ongoing real estate efforts, with potential charges in 2Q). We think 3Q expectation could be ok-to-slightly high if no price increase in 3Q,” they explained.
Spotify shares are up more than 2% on Tuesday.
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