Morgan Stanley Boosts Spotify Technology (NYSE:SPOT) Price Target to $610.00

Key Points

• Morgan Stanley raised its price target on Spotify to $610 from $590 and kept an overweight rating, implying about 16.7% upside from the prior close.
• Analyst sentiment remains broadly positive overall, with Spotify holding a Moderate Buy consensus and an average target price of $646.31 across Wall Street coverage.
• Spotify recently posted solid earnings, beating EPS estimates with $4.04 per share and slightly topping revenue expectations, while revenue rose 8.2% year over year.

Spotify Technology (NYSE:SPOT - Get Free Report) had its price target lifted by research analysts at Morgan Stanley from $590.00 to $610.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Morgan Stanley's price objective points to a potential upside of 16.74% from the company's previous close.

A number of other brokerages have also issued reports on SPOT. Moffett Nathanson assumed coverage on Spotify Technology in a report on Tuesday, January 27th. They issued a "neutral" rating and a $487.00 price target for the company. Guggenheim decreased their target price on Spotify Technology from $600.00 to $565.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. Citigroup upgraded Spotify Technology from a "neutral" rating to a "buy" rating and set a $650.00 target price for the company in a report on Friday, January 30th. Arete Research upgraded Spotify Technology from a "neutral" rating to a "buy" rating and set a $586.00 price target on the stock in a research note on Thursday, February 26th. Finally, Benchmark decreased their price objective on Spotify Technology from $760.00 to $695.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $646.31.

Spotify Technology Price Performance

SPOT stock opened at $522.55 on Friday. Spotify Technology has a 12 month low of $405.00 and a 12 month high of $785.00. The firm's 50-day moving average is $479.71 and its 200 day moving average is $523.90. The company has a market capitalization of $107.58 billion, a PE ratio of 41.42, a P/E/G ratio of 1.05 and a beta of 1.55.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The company reported $4.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.41 by $0.63. The company had revenue of $5.25 billion during the quarter, compared to analysts' expectations of $5.23 billion. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. The firm's quarterly revenue was up 8.2% on a year-over-year basis. During the same period in the previous year, the company earned $1.07 EPS. Sell-side analysts forecast that Spotify Technology will post 14.87 EPS for the current fiscal year.

Insider Transactions at Spotify Technology

In other news, CEO Alex Norstrom sold 5,436 shares of the firm's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $479.51, for a total value of $2,606,616.36. Following the completion of the transaction, the chief executive officer directly owned 69,989 shares in the company, valued at $33,560,425.39. This trade represents a 7.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Gustav Soderstrom sold 20,833 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $473.52, for a total value of $9,864,842.16. Following the completion of the sale, the chief executive officer owned 20,609 shares in the company, valued at approximately $9,758,773.68. This represents a 50.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 47,102 shares of company stock worth $21,444,648 over the last three months. Corporate insiders own 0.40% of the company's stock.

Hedge Funds Weigh In On Spotify Technology

Institutional investors and hedge funds have recently modified their holdings of the stock. Bessemer Group Inc. raised its holdings in Spotify Technology by 35.1% in the 3rd quarter. Bessemer Group Inc. now owns 682,639 shares of the company's stock worth $476,483,000 after purchasing an additional 177,310 shares during the period. Principal Financial Group Inc. increased its position in shares of Spotify Technology by 12.9% in the fourth quarter. Principal Financial Group Inc. now owns 645,196 shares of the company's stock valued at $374,672,000 after buying an additional 73,722 shares in the last quarter. Truxt Investmentos Ltda. purchased a new stake in shares of Spotify Technology in the third quarter valued at approximately $2,093,000. Ownership Capital B.V. purchased a new position in shares of Spotify Technology during the 3rd quarter valued at approximately $2,769,000. Finally, Vanguard Group Inc. raised its holdings in Spotify Technology by 2.5% in the 3rd quarter. Vanguard Group Inc. now owns 1,005,882 shares of the company's stock valued at $702,106,000 after acquiring an additional 24,199 shares during the last quarter. Institutional investors and hedge funds own 84.09% of the company's stock.

Spotify Technology News Roundup

Here are the key news stories impacting Spotify Technology this week:

• Positive Sentiment: Spotify outlined upbeat long-term targets, including mid-teens annual revenue growth and gross margins of 35% to 40% by 2030, reinforcing the case for continued earnings and cash flow expansion. Spotify stock pops on guidance at first investor day since 2022
• Positive Sentiment: The company announced new AI-driven products, including tools for premium users to create covers and remixes, plus AI-powered podcast and audiobook creation features, which could open new revenue streams and deepen subscriber engagement. Spotify adds AI-powered Q&A and briefing generation features to podcasts
• Positive Sentiment: Spotify also struck a licensing deal with Universal Music Group for responsible AI-generated covers and remixes, which supports creator partnerships while giving the platform a differentiated product offering. Spotify strikes deal with Universal Music to let premium users create AI covers, remixes
• Positive Sentiment: Additional Investor Day announcements, such as reserving concert tickets for top fans, could improve user retention and increase premium value. Spotify Will Set Aside Concert Tickets for Artists' Superfans
• Neutral Sentiment: Media coverage on Spotify’s 20th anniversary and podcast strategy is more of a brand and product update than a clear near-term financial catalyst. Spotify 20th Anniversary: What Impact Did Podcasts Have On The Company?
• Negative Sentiment: One report noted that Spotify may face higher costs in Canada due to rule changes, which could pressure margins if broader regulatory cost headwinds emerge. Netflix, Spotify to face higher costs as Canada changes rules
• Negative Sentiment: Pomerantz LLP said it is investigating claims on behalf of Spotify investors, a legal overhang that can weigh on sentiment even if no wrongdoing is proven. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Spotify Technology S.A. - SPOT

Spotify Technology Company Profile

Spotify Technology is a digital audio streaming company best known for its on-demand music service and a growing portfolio of spoken-word content. Founded in Sweden in 2006 by Daniel Ek and Martin Lorentzon and launched commercially in 2008, the company offers a cross-platform app that enables users to discover, stream and organize music, podcasts and other audio. Its primary consumer products include a free, ad-supported tier and a paid Spotify Premium subscription that provides ad-free listening, offline playback and higher-quality audio streams.

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