Credit Suisse upgrades Spotify to Neutral, says Q3 sub miss now priced in - InvestingChannel

Credit Suisse upgrades Spotify to Neutral, says Q3 sub miss now priced in

Credit Suisse analyst Brian Russo upgraded Spotify Technology to Neutral from Underperform with an unchanged price target of $120. The stock closed Tuesday down $1.48 to $112.52. With a “negative narrative” gaining momentum since the summer, expectations for a Q3 subscriber miss are now priced into the stock, Russo tells investors in a research note. The analyst, who points out Spotify shares are down 28.6% over the past eight weeks and short interest in the name is now at historical highs, sees a balanced risk/reward profile in the near-term. However, Russo’s longer term concerns around Spotify’s subscriber and revenue growth remain.