Jefferies raises Spotify stock price target to $845 from $730

On Friday, Jefferies analysts raised the price target for Spotify Technology S.A. (NYSE: NYSE:SPOT) stock to $845 from the previous $730, while maintaining a Buy rating. The streaming giant, currently trading at $712.82 with a market capitalization of $146 billion, has seen its stock surge 59% year-to-date. The decision reflects several positive factors anticipated to boost the company’s financial performance. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, though current valuations suggest the stock may be trading above its Fair Value.

The analysts highlighted a number of catalysts that could drive Spotify’s revenue and EBITDA growth for fiscal year 2026. These include potential price increases, benefits from the resolution of the Apple-Epic lawsuit, improved advertising monetization, and the introduction of a new superfans tier. InvestingPro data shows the company’s strong revenue growth of 17.2% over the last twelve months, with 19 additional exclusive insights available to subscribers.

Additionally, changes to Apple (NASDAQ:AAPL)’s iOS platform are expected to contribute to an increase in Spotify’s net additions, potentially exceeding the market’s current expectations of 5 million new users. The analysts noted that these factors could positively impact Spotify’s revenue and profitability.

The analysts also mentioned that the anticipated price increases for Spotify’s audiobook bundle are likely to enhance gross margins. This, in turn, supports their adjusted EBITDA forecast for fiscal year 2026, which is projected to be 9% higher than current market estimates.

Spotify’s stock has been closely watched by investors as the company continues to innovate and expand its offerings in the competitive streaming market.

In other recent news, Spotify has been at the center of several significant developments. JPMorgan has raised its price target for Spotify to $730 from $670, maintaining an Overweight rating, citing the company’s growth prospects and cost discipline. Similarly, Guggenheim increased its price target to $725, reflecting updated estimates on currency impact and price increases, while maintaining a Buy rating. Bernstein SocGen Group also reaffirmed its Outperform rating with a price target of $825, indicating confidence in Spotify’s market performance and growth potential.

Additionally, the Stockholm Court of Appeal found Spotify in violation of the EU’s General Data Protection Regulation (GDPR), following an inspection by the Swedish Data Protection Authority. The court ruled that Spotify failed to provide necessary information for users to exercise their rights under GDPR and did not offer adequate safeguards for data transfers. The ruling highlights compliance issues Spotify faces in the European market. These developments underscore the varied challenges and opportunities Spotify is navigating in the current market landscape.

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