Analyst: Spotify's Revenue Forecast Is 'Too Ambitious'

Shares of music streaming giant Spotify Technology SA (NYSE:SPOT) were last seen down 0.5% to trade at $310.15, on the heels of a downgrade at Redburn Atlantic to "sell." The analyst in question noted the company's structural challenges and said its revenue forecast is “too ambitious."

Despite today's bear note, the brokerage bunch is optimistic toward SPOT, with 24 of 35 firms in coverage sporting a "buy" or better. Plus, the 12-month consensus target price of $345.70 is an 11.4% premium to current levels.

The same cannot be said for the options pits. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio ranks higher than 73% of readings from the past 12 months. In other words, options traders have been more bearish than usual. 

It's worth noting Spotify Technologies stock currently boasts attractively priced premiums. This is per its Schaeffer's Volatility Indexes (SVI) of 36% that sits in the 17th percentile of annual readings.

The equity is today testing long-term support from the 40-day moving average, which has been in place since late October. Shares are not far off from their June 5, three-year high of $330.91, and despite pacing for a third-straight daily loss still sport a 92.9% year-over-year lead.