Goldman Sachs Downgrades Spotify to Neutral on Stock Risk/Reward
Goldman Sachs cut Spotify's stock rating to "Neutral" (from "Buy"). They think the stock price already reflects its strong future revenue growth.
- Goldman Sachs recently downgraded its recommendation for Spotify (SPOT).
- The new rating is Neutral, lowered from their previous rating of Buy.
- Despite the downgrade, Goldman Sachs actually increased the stock’s price target slightly, moving it to $770 (up from $765).
- The analysts believe the risk and reward for Spotify shares are now "balanced" as the company approaches its Q3 earnings report.
- A key factor in the change is that the stock price is already "increasingly pricing in" Spotify’s expected future growth.
- Looking ahead, Goldman Sachs maintains a positive view on Spotify’s core business, expecting the company to achieve mid-teens percent annual total revenue growth over the next four years.