Goldman Sachs raises Spotify stock price target to $775 on growth outlook

Investing.com - Goldman Sachs has raised its price target on Spotify (NYSE:SPOT), currently trading at $722.35 with a market capitalization of $148 billion, to $775.00 from $680.00 while maintaining a Buy rating ahead of the company’s Q2 2025 earnings report, scheduled for July 29.

The investment bank cited potential financial benefits from upcoming engagement and monetization opportunities for Spotify, specifically highlighting Super Premium and Video Podcasts as growth drivers.

Goldman Sachs noted that investors have shown increased confidence in Spotify’s defensive positioning compared to other consumer discretionary companies in its coverage universe.

The firm’s updated price target reflects revised forward operating estimates that account for the current macroeconomic and operating environment.

Goldman Sachs analyst Eric Sheridan’s price target adjustment represents a $95 increase from the previous target of $680.00, signaling continued optimism about Spotify’s business prospects.

In other recent news, several investment firms have adjusted their price targets for Spotify, reflecting confidence in the company’s growth prospects. UBS raised its price target to $895, citing Spotify’s expansion into audiobooks and new subscription tiers as key growth drivers. The firm anticipates a 20% operating margin by 2027, driven by a mix of non-music verticals and cost discipline. BofA Securities increased its price target to $900, maintaining a Buy rating but adjusting revenue forecasts due to currency impacts. The firm remains confident in Spotify’s strong fundamentals despite external headwinds.

Guggenheim also raised its target to $840, emphasizing the impact of currency changes and social charges on the company’s financials. The firm remains optimistic about Spotify’s growth, highlighting pricing power and expanded audio formats like audiobooks and podcasts. Cantor Fitzgerald set a new target of $640, maintaining a Neutral rating while acknowledging Spotify’s solid fundamentals amid margin pressures. Lastly, Pivotal Research increased its target to $900, citing Spotify’s strong market position and potential for user growth and monetization improvements. These adjustments reflect a generally positive outlook from analysts on Spotify’s future performance.

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