Spotify (SPOT) PT Raised to $320 at Piper Sandler

Piper Sandler analyst Matt Farrell raised the price target on Spotify (NYSE: SPOT) to $320.00 (from $300.00) while maintaining a Neutral rating.

The analsyt commented, "Despite softer MAU trends and in-line subscribers, Spotify delivered gross margin well ahead of expectations, showing once again that the profitability dynamics matter most to investors. Specifically, gross margin was 120 basis points ahead of expectations on the back of improved music and podcast profitability, while Q2 operating income guidance of €250 million was well ahead of expectations. Management noted the softer MAU trends were tied to more moderated marketing activity in the quarter, which created some top of funnel headwinds. The company has course-corrected the marketing spend in order to better address MAUs moving forward. Finally, the company reiterated its expectation of improving gross margin and operating margin as we move through 2024. We reiterate our Neutral rating and raise our price target to $320 from $300."

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