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Investing.com - CFRA has upgraded Spotify (NYSE:SPOT) from Hold to Buy while maintaining its price target of $790.00, citing an "enhanced buying opportunity" following a share price decline on news of leadership changes. The streaming giant’s stock, currently trading at $695.91, has delivered an impressive 97.67% return over the past year, according to InvestingPro data.
The streaming giant announced founder Daniel Ek will transition to Executive Chairman after 20 years as CEO, with the board appointing Gaustav Soderstrom and Alex Norstrom as co-CEOs, both reporting directly to Ek.
CFRA maintains its earnings estimates of EUR5.80 per share for 2025 and EUR11.40 for 2026, with projected revenues of EUR17.6 billion and EUR20.2 billion respectively.
The research firm sees no business continuity risk from these leadership changes, noting both new co-CEOs have been with Spotify for over 15 years and have worked together throughout their tenure.
While media reports have highlighted customer concerns regarding Ek’s venture capital investments in the defense industry, CFRA does not anticipate material damage to Spotify’s brand or growth potential, though it notes the leadership changes could impact the company’s expansion in music streaming.
In other recent news, Spotify has announced a significant leadership change, with founder Daniel Ek set to transition from CEO to Executive Chairman by January 2026. Current co-Presidents Gustav Söderström and Alex Norström will assume the roles of co-CEOs, formalizing a structure that has been in place since 2023. Meanwhile, analyst activity around Spotify has been robust, with Wolfe Research reiterating an Outperform rating and a price target of $790, emphasizing the stable transition to the new leadership. Conversely, Goldman Sachs downgraded Spotify to Neutral, although it slightly raised its price target to $770, citing balanced risk and reward ahead of the company’s Q3 2025 earnings report. Goldman Sachs anticipates a mid-teens percentage revenue growth driven by premium pricing and advertising revenue. HSBC has raised its price target for Spotify to $814, maintaining a Buy rating due to recent product enhancements and price increases. Additionally, BNP Paribas Exane initiated coverage with an Outperform rating and a $900 price target, highlighting Spotify’s market leadership. These developments underscore the dynamic environment surrounding Spotify as it navigates leadership changes and market expectations.
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