Spotify: Credit Suisse starts coverage with 'underperform'
(CercleFinance.com) - Credit Suisse has initiated its coverage of music streaming company Spotify with an "underperform" rating and a target price of 120 dollars, citing "long-term challenges.
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While the broker expects the Swedish firm to report significant growth in subscribers and revenues, Credit Suisse believes the consensus expectations are too high and sees risk over content costs.
Crucially, Credit Suisse says consensus forecasts imply that by 2023 half of all households across North and Latin America will pay for a music service of some kind, which it sees as "aggressive" given intense competition and the popularity of free music services.
The shares of Spotify are currently down 0.5% at 137 dollars.
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.
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While the broker expects the Swedish firm to report significant growth in subscribers and revenues, Credit Suisse believes the consensus expectations are too high and sees risk over content costs.
Crucially, Credit Suisse says consensus forecasts imply that by 2023 half of all households across North and Latin America will pay for a music service of some kind, which it sees as "aggressive" given intense competition and the popularity of free music services.
The shares of Spotify are currently down 0.5% at 137 dollars.
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.