Citi Sees Gross Margin Expansion Ahead For Spotify
Citi analyst Jason B. Bazinet noted that Spotify Technology S.A. (NYSE: SPOT) has been building a broader audio platform that spans both Music and Podcasts for several years.
He noted that these investments have not helped or hurt gross margins.
However, with larger tailwinds from Marketplace and smaller headwinds from Podcasting, he expected gross margin expansion in 2023 and beyond.
All of which should be bullish for the firm’s equity value.
Bazinet reiterated a Buy on the stock.
Last week, Wells Fargo upgraded its rating on the stock following its June 2022 investor day.
Raymond James had also upgraded the stock. He saw the competitive landscape in streaming music was largely stable versus Netflix, Inc (NASDAQ: NFLX).
Price Action: SPOT shares traded higher by 3.20% at $102.51 on the last check Thursday.
Latest Ratings for SPOT
Date | Firm | Action | From | To |
|---|---|---|---|---|
Mar 2022 | Deutsche Bank | Initiates Coverage On | Hold | |
Feb 2022 | B of A Securities | Maintains | Buy | |
Feb 2022 | Wells Fargo | Maintains | Underweight |
View More Analyst Ratings for SPOT
View the Latest Analyst Ratings
See more from Benzinga
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
