Spotify price target raised to $640 from $610 at Cantor Fitzgerald

Cantor Fitzgerald raised its price target on Spotify (NYSE:SPOT) to $640 from $610 on Wednesday, while maintaining a Neutral rating on the music streaming service. The stock, currently trading at $721.28, has delivered an impressive 132.75% return over the past year and is trading near its 52-week high of $728.80.

The research firm cited Spotify’s "solid" fundamental outlook despite near-term headwinds to margins. Cantor Fitzgerald’s new price target is based on 40 times fiscal year 2026 estimated EBIT, up from its previous multiple of 35 times.

The firm revised its fiscal year 2025 EBIT estimate slightly lower to account for EBIT headwinds and intraquarter foreign exchange impacts. Despite these adjustments, Cantor Fitzgerald expressed confidence in Spotify’s core business.

Cantor Fitzgerald noted that Spotify "has plenty of pricing power in the core music business," suggesting the company can effectively manage its revenue streams through strategic price adjustments.

The firm also stated that product improvements should maintain healthy subscription growth for Spotify over the next two to three years, supporting its long-term business outlook.

In other recent news, Spotify has seen a series of analyst upgrades reflecting confidence in its growth prospects. Pivotal Research raised its price target for Spotify to $900, citing the company’s strong market position and potential for subscriber growth. Jefferies also increased its target to $845, highlighting potential revenue boosts from price increases and improved advertising monetization. Meanwhile, JPMorgan adjusted its target to $730, emphasizing Spotify’s expanding user base and positive cash flow. Bernstein SocGen Group maintained its Outperform rating with a price target of $825, showing continued optimism in Spotify’s strategic initiatives.

In a different development, the Stockholm Court of Appeal found Spotify in violation of EU data protection laws, specifically the General Data Protection Regulation (GDPR). The court ruled that Spotify failed to provide clear information regarding personal data handling and did not offer adequate safeguards for data transfers. This ruling highlights ongoing compliance challenges for Spotify within the European regulatory framework. These recent developments underscore the complexities Spotify faces as it navigates growth opportunities and regulatory requirements.

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