Spotify: Canaccord Genuity maintains its 'buy' rating
(CercleFinance.com) - Canaccord Genuity maintains its "buy" rating on Spotify, with a target price of 170 dollars, after the music streaming company passed the threshold of its first 100 million subscribers globally.
While Spotify's ad revenue missed its estimate in the first quarter, the Canadian broker says the softness was primarily due to the need to cut prices on US sponsored sessions video ads.
Podcasting provided a small boost to first-quarter sales, Canaccord notes, following the completion of acquisitions and the launch of a slate of exclusive podcast content.
"Podcast revenue is expected to accelerate through the year as Spotify develops and rolls out a differentiated set of targeting and measurement tools for podcast advertisers that parallel those offered in its core music business," the broker says.
The recent launch in India could also be a source of some of the upside to 2019 estimates, it adds.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
While Spotify's ad revenue missed its estimate in the first quarter, the Canadian broker says the softness was primarily due to the need to cut prices on US sponsored sessions video ads.
Podcasting provided a small boost to first-quarter sales, Canaccord notes, following the completion of acquisitions and the launch of a slate of exclusive podcast content.
"Podcast revenue is expected to accelerate through the year as Spotify develops and rolls out a differentiated set of targeting and measurement tools for podcast advertisers that parallel those offered in its core music business," the broker says.
The recent launch in India could also be a source of some of the upside to 2019 estimates, it adds.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.