Monness, Crespi, Hardt Downgrades Spotify (SPOT) to Neutral, 'darkest days of this downturn are ahead of us'

Monness, Crespi, Hardt analyst Brian White downgraded Spotify (NYSE: SPOT) from Buy to Neutral.

The analyst comments "Spotify’s stock has enjoyed a strong rebound this year, racking up a gain more than double the average increase for our coverage universe in 2023, rising 95%. Given this strong outperformance and our mounting concerns surrounding the potential collateral damage from this downturn, we are stepping to the sidelines on Spotify, downgrading the stock to a Neutral rating from a Buy rating. Spotify is scheduled to report its 3Q:23 results on October 24 with a webcast at 8:00 a.m. ET. Spotify is riding a favorable long-term trend, enhancing its platform, tapping into a large digital ad market, expanding its audio offerings, and improving its cost structure; however, competition is fierce, margins thin, and we believe the darkest days of this downturn are ahead of us."

For an analyst ratings summary and ratings history on Spotify click here. For more ratings news on Spotify click here.

Shares of Spotify closed at $153.75 yesterday.

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