Morgan Stanley Says 'Spotify The Business' Has Joined 'Spotify The Product' In Delivering For Shareholders
Portfolio Pulse from Shivani Kumaresan
Morgan Stanley analyst has reiterated an Overweight rating on Spotify Technology SA (SPOT) and raised the price target from $190 to $200. The analyst highlighted Spotify's strength against competitors like Apple and Amazon, and its successful unit economics. Spotify's Q3 FY23 revenue growth was 11% YoY, reaching $3.65 billion, with an EPS of $0.36, both above street view. The analyst expects Spotify to deliver on its 30%+ gross margin and 10%+ operating margin target within the guidance range of '25-'27.
October 25, 2023 | 7:32 pm
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POSITIVE IMPACT
Morgan Stanley analyst has reiterated an Overweight rating on Spotify and raised the price target from $190 to $200. Spotify's Q3 FY23 revenue growth was 11% YoY, reaching $3.65 billion, with an EPS of $0.36, both above street view.
The positive rating and raised price target by Morgan Stanley analyst indicates a bullish outlook for Spotify. The company's strong Q3 FY23 performance and expected delivery on its gross margin and operating margin targets further support this outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Apple was mentioned as a competitor to Spotify. However, the Morgan Stanley analyst highlighted Spotify's strength against competitors like Apple.
While Apple is mentioned as a competitor to Spotify, the news does not provide any specific information or outlook for Apple. Therefore, the impact on Apple's stock is neutral.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Amazon was mentioned as a competitor to Spotify. However, the Morgan Stanley analyst highlighted Spotify's strength against competitors like Amazon.
While Amazon is mentioned as a competitor to Spotify, the news does not provide any specific information or outlook for Amazon. Therefore, the impact on Amazon's stock is neutral.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50