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Research Alert: CFRA Maintains Buy Opinion On Shares Of Spotify Technology S.a.
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Research Alert: CFRA Maintains Buy Opinion On Shares Of Spotify Technology S.a.
Apr 28, 2026 12:12 PM

02:50 PM EDT, 04/28/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lowered our target by $75 to $500 using a more conservative forward TEV/EBITDA multiple at 31.1x compared to the three-year historical average at 55.5x. SPOT's share price is weak today. We think the sell-off is attributed to recognizing that the company's revenue growth potential may be mid-teens at best vs. historical growth above 20%. We reduced our revenue projections in 2026 to EUR19.6B (prior EUR20.1B) and in 2027 to EUR22.5B (EUR22.8B); forecasting 13%-15% revenue growth. With wider margins, we increased our 2026 EPS estimate by EUR0.75 to EUR13.55 and keep 2027's at EUR15.50. SPOT is growing faster in regions of the world that command significantly lower subscriber pricing, which hurt consolidated revenue growth. Also, Ad-Supported plans were disappointing in Q1 2026, declining 102 bps Y/Y to 13%. This was attributed to content costs from higher engagement on the free tier growing faster than ad revenue. Management views this as a temporary issue that will reverse as monetization catches up.

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