Analysts Rally Behind Spotify: Price Targets Raised After 17% Workforce Cut
Portfolio Pulse from Franca Quarneti
Spotify Technology SA (NYSE:SPOT) saw its shares rise after announcing a 17% workforce cut, part of cost reduction efforts following excessive hiring in 2020 and 2021. Analysts from Morgan Stanley, Macquarie Equity Research, and Key Banc Capital Market have raised their price targets for SPOT, citing a focus on profitability and earnings potential. Morgan Stanley named SPOT a Top Pick and raised the target from $200 to $230, Macquarie raised it from $210 to $232, and Key Banc raised it to $255 from $210. The layoffs are expected to result in annualized cost savings of about €300 million for FY'24.
December 05, 2023 | 9:17 pm
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POSITIVE IMPACT
Spotify's share price is likely to experience a positive short-term impact due to the raised price targets by major analysts following the announcement of workforce reductions aimed at cost savings and profitability.
The positive revisions in price targets by respected analysts from Morgan Stanley, Macquarie Equity Research, and Key Banc Capital Market are likely to instill investor confidence and drive up SPOT's stock price in the short term. The focus on cost reduction and profitability, along with the potential for significant annualized cost savings, supports a bullish outlook for the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100