Gold prices tick higher on fresh US tariff threats, Fed rate cut hopes
Investing.com - Wells Fargo (NYSE:WFC) has reiterated its Overweight rating on Spotify (NYSE:SPOT) with a price target of $750.00. According to InvestingPro data, the stock has delivered an impressive 103% return over the past year, though current metrics suggest it may be trading above its Fair Value.
The financial services firm cited Spotify’s high customer affinity and low churn rate as key factors supporting the rating decision. Wells Fargo also highlighted the streaming platform’s double-digit percentage growth in both subscribers and monthly active users. This growth is reflected in the company’s robust 14.8% revenue increase over the last twelve months, with InvestingPro analysis showing strong financial health metrics.
The firm acknowledged investor concerns about slowing Average Revenue Per User (ARPU) growth but expressed confidence that Spotify will not face long-term flat or declining Premium ARPU growth.
Wells Fargo expects innovation to support meaningful pricing and revenue growth over the medium term. The firm also noted that adding audiobooks and shifting to new label terms could improve operating leverage for the streaming company.
The analyst referenced a recent announcement that should improve investor conviction about Spotify’s future prospects, suggesting there are more positive developments to come for the audio streaming platform.
In other recent news, Spotify announced plans to increase its Premium subscription prices across various international markets, including regions such as South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific. This move affects current subscribers, who will receive notifications via email about the new rates. The price hikes range from 9% for Individual plans to 16.7% for Family plans. Analysts have responded with mixed adjustments to Spotify’s stock targets. Wolfe Research reiterated an Outperform rating with a $790 price target, while KeyBanc lowered its target to $830, citing the company’s momentum with monthly active users and Premium Subscribers. Bernstein maintained its Outperform rating with an $840 price target, viewing the recent stock pullback as an opportunity. Meanwhile, Benchmark reduced its price target to $800, highlighting concerns over weak Average Revenue Per User (ARPU) guidance and advertising results. These developments reflect ongoing analyst evaluations and strategic moves by Spotify in the global market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.