Spotify Technology (NYSE:SPOT) Price Target Raised to $700.00

On February 8th, 2025, Spotify Technology (NYSE:SPOT) saw its price target raised from $650.00 to $700.00 by Canaccord Genuity Group. This update was part of a research note shared with investors, indicating a buy rating for the stock.

Other financial analysts have also enhanced their forecasts for Spotify. Guggenheim increased its price target from $520.00 to $675.00, backing this with a buy rating. Similarly, Piper Sandler raised its target from $330.00 to $450.00 while assigning a neutral rating in a report dated November 13th. UBS Group updated their target from $485.00 to $540.00 and also maintained a buy recommendation in mid-January. Wolfe Research decided to keep a peer perform rating on Spotify shares, while KeyCorp increased their price target from $555.00 to $600.00, labeling it as overweight in a late January report.

Currently, Spotify has received varied ratings from analysts: one has issued a sell rating, seven opted for a hold, while twenty analysts gave it a buy rating. According to MarketBeat, the consensus rating for Spotify Technology is classified as a "Moderate Buy," with an average price target set at $514.79.

Stock Performance Overview

On the morning of the announcement, shares of Spotify opened at $623.54. The company has shown varied performance metrics, including a fifty-day moving average of $491.03 and a two-hundred day moving average of $412.38. Over the last twelve months, the stock price has fluctuated between a low of $228.07 and a high of $632.45. Spotify's market capitalization is approximately $124.12 billion, coupled with a price-to-earnings ratio of 169.44 and a beta value of 1.63.

In November of the previous year, Spotify reported earnings results indicating earnings per share (EPS) of $1.45 for the quarter, which was below the analyst consensus estimate of $1.75 by $0.30. The company had a net margin of 4.66% and a return on equity of 19.07%. Its quarterly revenue totaled $3.99 billion, falling short of expectations of $4.03 billion. However, this figure reflected an 18.8% increase over the same period from the previous year. Analysts predict that Spotify Technology is likely to report earnings of $5.91 per share for the current year.

Investor Activity in Spotify Shares

Recent months have seen various institutional investors modifying their stakes in Spotify. For instance, Prestige Wealth Management Group LLC acquired shares valued at approximately $26,000 during the third quarter, and Hobbs Group Advisors LLC took a new position valued at around $33,000. Another notable change came from Larson Financial Group LLC, which increased its holding by 51.6% in the same period. They now own 97 shares worth about $36,000 after purchasing an additional 33 shares. V Square Quantitative Management LLC also entered the market with a new position worth $40,000. Finally, Rakuten Securities Inc. increased its stake in Spotify by 40.5%, now owning 111 shares valued at $41,000. Currently, institutional investors and hedge funds hold 84.09% of Spotify’s stock.

Overview of Spotify Technology

Spotify Technology SA, along with its subsidiaries, provides audio streaming subscription services globally. The company's operations are divided into two segments: Premium and Ad-Supported. The Premium segment allows subscribers unlimited online and offline streaming access to their extensive catalog of music and podcasts without interruptions from commercials.

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