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Redburn analyst Nick Delfas downgraded Spotify Technology (SPOT) to Sell from Neutral with a $170 price target.

The company is "cornered" as it is "unable to take listening away from radio, unable to make a margin if it did, and unable to grow its 'two-sided' promotional business with labels," Delfas tells investors in a research note. Further, the music streaming market is maturing and Spotify price rises are not being followed by competitors, says the analyst.

Delfas sees 30% downside in the stock to his price target. He sees "little current evidence" that Spotify can break out of its corner of limited average revenue per user, pricing power, and margins. This means Spotify "risks just being an efficient conduit for labels to monetize music, and little more," contends Delfas.