Can Spotify Go Higher? Some Analysts Say Yes, Others Say No

Author:

M. Corey Goldman

Publish date:

Jul 6, 2020

Video Duration:

2:19

Can the likes of Kim Kardashian West and Joe Rogan boost Spotify's membership numbers and revenue?

Streaming music and content service Spotify Technology (SPOT) - Get Report on Monday received both a thumbs up and a thumbs down from two separate Wall Street analysts with differing views on the company’s prospects for how it will monetize its hotly anticipated U.S.-focused podcast content.

J.P. Morgan analyst Doug Anmuth raised his one-year target on Spotify to $305 from $185 and kept his overweight rating on the company’s stock amid what he expects to be positive momentum from the company’s efforts to secure exclusive podcast content and also beef up its premium offering.

On the flip side, Bernstein analyst Todd Juenger downgraded Spotify to underperform from market perform, noting in his own note that his team does not see Spotify's recent move to bolster its podcast offerings generating as much in the way of earnings as other analysts and investors expect, given some "are only relevant in the U.S.”

He did raise his one-year price target to $172 from $134, though that still implies downside from its last close above $270.

Stockholm-based Spotify has signed a string of exclusive content deals of late, including an agreement with podcaster Joe Rogan, a multiyear partnership with AT&T's (T) - Get Report Warner Bros. and DC Entertainment to produce scripted podcasts exclusively on the platform, and an agreement with Kim Kardashian West for an exclusive criminal-justice podcast.

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