Evercore ISI analyst Benjamin Black said Spotify's Q4 results met his "generally muted expectations" with its better than expected user growth being the highlight of the quarter. The bigger concern for bulls is the 2020 outlook, "which will lead consensus models lower," contends Black, who cut his "already below Street revenue estimates" and gross profit estimates in light of management's outlook. He lowered his price target on Spotify shares to $110 from $115 and keeps an Underperform rating on the stock.

Deutsche Bank raised the firm's price target on Spotify to $400 from $340 and keeps a Buy rating on the shares. The company reported "very strong" Q1 results and a "very encouraging" Q2 outlook, which will lead to materially higher consensus gross margin and EBIT estimates, the analyst tells investors in a research note. The firm says sizable gross margin beat builds conviction in Spotify achieving its investor day target of 30% gross margins on the earlier side of the fiscal 2025-2027 range.

HSBC analyst Joseph Thomas raised the firm's price target on Spotify to $355 from $310 and keeps a Buy rating on the shares. The company's gross profit and EBIT for Q1 came in well ahead of expectations as it executes against its strategy to minimize costs, the analyst tells investors in a research note. The firm says the guidance implies a strong step-up in margins for Q2. It is now more bullish on Spotify's ability to monetize its audiobook offering.

Loop Capital analyst Alan Gould raised the firm's price target on Spotify to $300 from $250 and keeps a Hold rating on the shares. The company's Q1 results demonstrated "impressive profit and cash flow growth", though there was a small miss on ad-supported subscriber metric, partially due to some pull forward in Q4 and an over-correction on marketing spend, the analyst tells investors in a research note. Audiobooks are also a drag on profits, but Podcasting should be profitable for the year, though it contributed a small loss to Spotify during the quarter, the firm added.

Guggenheim analyst Michael Morris raised the firm's price target on Spotify to $350 from $290 and keeps a Buy rating on the shares after the company reported Q1 results that were highlighted by the company's largest ever operating income quarter and expanding gross margin. The company's Q2 profitability guidance was "similarly strong," the analyst added in an earnings recap note.

Wells Fargo raised the firm's price target on Spotify to $400 from $310 and keeps an Overweight rating on the shares. A year ago, Spotify's long-term profitability was in question, the firm notes. Now, it's a question of "how good?" margins can get. Wells believes strong profit growth supports its 41-times EV/EBITDA multiple.