Rosenblatt Securities analyst Mark Zgutowicz maintained a Buy rating on Spotify Technology SA (SPOT) today and set a price target of $169. The company’s shares opened today at $136.65.
Zgutowicz wrote:
“We estimate the top 3% of podcasts drive over half of total listening hours, which importantly explains the long tail of the podcast market, or the multitudes of podcasts with minimal audiences. In Figure 1, we highlight the top 10 podcast publishers and estimate their hit shows (represented in top 20 US rankings) drive ~80-90% of respective monthly audiences, or an average 3.5M monthly listeners per hit show. In other words, for SPOT to scale podcast advertising, it’s about quality not quantity, and 3.5M as a reasonable audience bar in today’s market. While SPOT doesn’t yet produce monetize podcast advertising, we estimate ~5% of its MAUs, or ~7M, are podcast listeners, a number that can clearly scale with better podcast creation and curation.”
Zgutowicz has an average return of 0.4% when recommending Spotify Technology SA.
According to TipRanks.com, Zgutowicz is ranked #1456 out of 5137 analysts.
Spotify Technology SA has an analyst consensus of Moderate Buy, with a price target consensus of $171, representing a 25.1% upside. In a report issued on February 4, Monness also maintained a Buy rating on the stock with a $200 price target.
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The company has a one-year high of $198.99 and a one-year low of $103.29. Currently, Spotify Technology SA has an average volume of 1.64M.
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Spotify Technology SA is an innovative digital music service offering music fans instant access to a world of music. The company enables on-demand streaming of audio content and aim to combat music piracy by offering a user experience, while monetizing licensed content with both an ad-supported, free-to-the-user model and a premium, paid model.
