As previously reported, Guggenheim analyst Michael Morris downgraded Spotify to Neutral from Buy citing what he sees as a combination of high consensus growth expectations and greater investor caution toward high-multiple stocks. He believes that the current consensus view for 2019 implies acceleration in both premium and ad supported subscriber growth as well as some anticipation of meaningful gross margin expansion resulting from renewals. However, Morris expects the renewal term disclosures are likely to lack the detail to support a direct positive impact on gross margin, he noted. He lowered his price target on Spotify shares to $120 from $190.