Spotify’s Stock (SPOT) Finds Support, Analyst Raises Price Target

Spotify's stock (NYSE: SPOT) has seen another price target raise, this time as a result of the firm's own price raises. Sentiment has been firmly bullish this year, with the Spotify stock price having added 61% since the start of 2025, and 135% over the past 12 months. Strong user metrics, successful price increases, and a series of bullish analyst ratings have all boosted sentiment, even amidst potential macroeconomic headwinds.

The latest vote of confidence comes from Bernstein analyst Ian Moore, who raised the firm's price target on Spotify to $840 from $825, while maintaining an “Outperform” rating.

This bullish outlook is predicated on the expectation that robust user growth and the positive impact of recent price hikes will offset the anticipated drag from unfavorable foreign exchange (FX) rates on Premium Average Revenue Per User (ARPU) and overall top-line growth. Moore's analysis suggests that Spotify is strategically positioned to navigate these currency-related challenges and continue its growth trajectory.

Since Spotify's stock price pulled back to test the $709 level, support has come back in. The past two trading sessions has seen the stock add close to 4%, as bulls look to reignite what has been a multi year rally.

This positive sentiment is echoed by other analysts. Guggenheim recently raised its price target to $840 as well, citing Spotify's strong market position, growth potential, and successful expansion into audiobooks and podcasts. Evercore ISI Group also reaffirmed its “Outperform” rating, increasing its price target to $750.

Analysts will be particularly interested in any updates on the rollout of new subscription tiers in the upcoming management commentary, including the potential “superfan” model, which Bernstein believes could significantly boost gross profit growth and drive long-term gross margins above 40%.

Spotify's recent strategic moves, including workforce reductions aimed at streamlining operations and a renewed focus on profitability, have also garnered positive attention from analysts. These efficiency initiatives, combined with pricing power and expansion into new content formats, are expected to drive significant EBITDA growth in the coming years.

That being said, anticipated FX headwinds remain a concern, as a stronger Euro could negatively impact reported revenue and profitability. Competition in the streaming music and audio content space is also intensifying, with rivals like Apple Music and Amazon Music vying for market share.

Despite these potential challenges, the prevailing sentiment surrounding Spotify remains decidedly positive. The company's strong market position, innovative content strategies, and increasing focus on profitability appear to have positioned it for continued growth.