Morgan Stanley Says Spotify's Foray Into Audiobooks Could Lower Churn And Increase Pricing Power
Portfolio Pulse from Shivani Kumaresan
Morgan Stanley analyst Benjamin Swinburne has maintained an Overweight rating on Spotify Technology SA (NYSE:SPOT) with a price target of $185. Spotify is entering the audiobooks market, starting with the U.K. and Australia. The offer will include 15 hours of free listening for Premium subscribers. The analyst believes this move will lower churn and increase pricing power for Spotify, and that it was factored into both 2023 guidance and the intermediate and long-term plans.
October 04, 2023 | 6:36 pm
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Spotify's entry into the audiobooks market is expected to lower churn and increase pricing power, according to Morgan Stanley. The stock maintains an Overweight rating with a price target of $185.
Spotify's entry into the audiobooks market is seen as a positive move by Morgan Stanley. The analyst believes this will add more value to its audio service for users, differentiating it from competition, and ultimately leading to lower churn and increased pricing power. This is expected to have a positive impact on the company's stock in the short term.
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