Spotify Analyst Finds Risk-Reward Compelling, but Sees Audiobooks Immaterial Into Year-End and 2023

The logo of online streaming music service Spotify is displayed on a tablet screen in Paris, in this illustration picture taken on April 19, 2018. Lionel Bonaventure/AFP/Getty Images

Spotify Technology SA launched audiobooks in the United States last week.

What Happened

Commenting on the development, KeyBanc Capital Markets analyst Justin Patterson reiterated an Overweight rating and a $148 price target for Spotify shares.

Audiobooks could be immaterial to Spotify’s performance into the year-end and likely in 2023, too, Patterson said in a note.