Spotify initiated with a Neutral at Cantor Fitzgerald

Cantor Fitzgerald analyst Deepak Mathivanan initiated coverage of Spotify with a Neutral rating and $340 price target. Shares have traded up 83% year-to-date and “rightfully so” after significant positive revisions to gross profit and EBIT estimates, the analyst tells investors. The firm still sees plenty of runway for healthy revenue growth and margin expansion, but adds that consensus expectations for steady premium ARPU increases from 2024-26 “could be a challenge for the company to meet.”