Brokerages Raise Spotify Price Targets

Analysts have broadly raised their price targets for Spotify, with Morgan Stanley, JPMorgan, Wells Fargo, Oppenheimer, Guggenheim and others lifting targets following the company’s recent results. Bernstein raised its target to $725, the highest cited, arguing that Spotify is entering a phase in which it can retain margin gains and that its fundamentals are diverging favorably from legacy media companies. Ratings remain mostly positive, though some firms maintain neutral or hold ratings and at least one brokerage issued a downgrade. MarketBeat data cited in several reports puts the consensus rating at Moderate Buy and the average target near $620. Spotify’s latest reported results included year-over-year gross-margin expansion, which helped underpin the more optimistic outlooks.