Spotify (SPOT) PT Raised to $550 at Cantor Fitzgerald - 'Several Catalysts Ahead'

Cantor Fitzgerald analyst Deepak Mathivanan raised the price target on Spotify (NYSE: SPOT) to $550.00 (from $490.00) while maintaining a Neutral rating.

The analyst commented, "SPOT reported 3Q with revenue and OI in-line with Street estimates. Total GM expanded 140bps y/y and came in 10bps above prior guide, primarily driven by premium GM upside. On user metrics, MAUs were in-line with guidance, while premium subs exceeded by 1m. Meanwhile, ad revenue growth accelerated to 9% y/y ex-FX, consistent with management's expectations for a 2H recovery. On outlook, SPOT guided 4Q revenue largely in-line with Street, while EBIT came in slightly above. On the product front, innovation remains robust, and SPOT highlighted encouraging adoption of recent AI-powered features and Audiobooks. In sum, 3Q was a solid quarter for SPOT, and we think shares have several product catalysts ahead. We have largely maintained our FY27E revenue and EBIT estimates. We reiterate our Neutral rating, and our revised PT is $550 (vs. $490 previously), now based on 25x FY27E EBIT."

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