Spotify Stock Knocked Down on Evercore Downgrade
Despite some progress that music-streaming leader Spotify (NYSE: SPOT) has made with profitability, Evercore remains skeptical about the company's ability to generate sustainable profits. Analyst Benjamin Black downgraded his rating on Spotify shares this week, from in-line (equivalent to a hold) to underperform (equivalent to a sell). Black left his price target unchanged at $115 but issued the downgrade partially in response to Spotify's stock rallying over the past couple of months.
Shares have flirted with $160 in recent days, and the analyst believes the risk/reward profile is now in favor of short-sellers.
Image source: Spotify.
Source Fool.com
