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Deutsche Bank: Spotify isn't 'Netflix 2.0'

Published 06/14/2018, 03:07 PM
© Reuters.  Deutsche Bank: Spotify isn't 'Netflix 2.0'
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  • Deutsche Bank (DE:DBKGn) is struggling with the bull case on Spotify (NYSE:SPOT) even as it stays positive on music companies overall.
  • "We do not think Spotify is Netflix (NASDAQ:NFLX) 2.0," says analyst Lloyd Walmsley, who's started coverage at Hold, pointing to a lack of visibility on its long-term margins and a lack of differentiated proprietary content. He'd prefer to invest on streaming tailwinds via major labels like Vivendi (OTCPK:VIVHY) instead. (h/t Bloomberg)
  • Walmsley has a price target of $155, implying 13.6% downside from the current $179.65.
  • Investors aren't nonplussed by the new rating, moving shares up 5.2% on the day to their new all-time high.
  • Now read: Financial Exchange Stock Talk: Galileo Russell On Spotify


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