Spotify Hit’s New High – Analysts Continue To Raise Outlook on Stock

Spotify's stock (NASDAQ:SPOT) has been boosted by a series of bullish analyst reports that have sent the stock soaring to new highs. As of this morning's pre-market, SPOT is trading at $782.14, a 0.8% jump overnight, and an impressive 8.72% increase over the past week leading in.

With the stock hitting highs of $777.38 in yesterday's session, this morning will see the stock open at new highs, prompted by a fresh round of price target upgrades.

UBS just raised its price target on Spotify to $895 from $680, reiterating a “Buy” rating. The firm highlighted several catalysts driving this positive outlook, including the expansion of audiobooks into new markets, the launch of new subscription tiers, price increases, and a ramp-up in advertising revenue.

UBS projects these factors will enhance monetization and sustain a 16% revenue growth rate through the end of 2028. They anticipate that Spotify's Q2 results will reflect a continuation of mid-teens revenue growth and annual margin expansion.

Guggenheim also joined the chorus of bullish analysts, increasing its price target from $725 to $840, maintaining a “Buy” rating. The firm cited Spotify's strong momentum, reflected in its 133% return over the past year, and expressed confidence in the company's mid- and long-term growth opportunities, emphasizing core pricing power, potential tier expansion, and growth in audiobooks and podcasts.

Pivotal Research has been particularly active in revising its price targets for Spotify, most recently setting a target of $900 on June 17, 2025. This revision was influenced by a shift to a 2026 year-end target, a reassessment of Spotify's stake in Tencent Music, and favorable currency impacts.

Pivotal emphasized Spotify's superior user interface and recommendation system as key drivers of its success, noting significant growth potential in the global audio streaming market. Other firms like Evercore ISI Group and Macquarie have also raised their price targets, further solidifying the positive sentiment surrounding the stock.

BofA are another to have upgraded their price target to $900 (from $700), whilst also holding a Buy rating.

Despite the current improving view from the analyst community, it's important to consider the potential risks and challenges facing Spotify. While the company has made significant strides in diversifying its revenue streams and improving profitability, it still faces intense competition from other streaming services, including Apple Music, Amazon Music, and YouTube Music.

The cost of content remains a significant expense, and the company must continue to innovate and differentiate itself to maintain its competitive edge. Furthermore, regulatory scrutiny and potential changes in copyright laws could impact Spotify's business model.

Despite these challenges, the prevailing sentiment surrounding Spotify is overwhelmingly positive. As analysts continue to raise their price targets and investors flock to the stock, Spotify appears set to solidify its position as the dominant player in the global audio streaming market.