TD Cowen analyst Doug Creutz has reiterated their neutral stance on SPOT stock, giving a Hold rating today.
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Doug Creutz has given his Hold rating due to a combination of factors. While Spotify’s Q4 results exceeded expectations in terms of users, revenue, and gross margin, there are concerns about future growth. The anticipated decline in gross margin for Q1:25 indicates potential challenges ahead after a period of increasing margins.
Furthermore, while the company’s guidance for Monthly Active Users (MAU) aligns with projections, the analyst is cautious about relying on surpassing lower guidance as a sustainable method for increasing share value. The price target has been adjusted upwards, reflecting some positive aspects of the company’s performance, but overall, the recommendation is to hold the stock, considering both the achievements and the uncertainties.