Wolfe Research has elevated its outlook on Spotify (SPOT, Financial), shifting its rating from Peer Perform to Outperform. The upgraded assessment comes alongside a substantial price target increase to $660. This change in sentiment follows renewed confidence in Spotify's gross margins, attributed to favorable agreements with music labels described as "win-win" scenarios.
The research firm highlights Spotify's robust subscriber growth, enhanced pricing strategies, and innovative product offerings as key drivers. These factors are seen as shaping a trajectory toward generating $22 per share in free cash flow by the year 2027. The analyst's insights suggest that Spotify's strategic initiatives could significantly enhance shareholder value over the coming years.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 35 analysts, the average target price for Spotify Technology SA (SPOT, Financial) is $637.12 with a high estimate of $738.34 and a low estimate of $377.67. The average target implies an upside of 10.95% from the current price of $574.25. More detailed estimate data can be found on the Spotify Technology SA (SPOT) Forecast page.
Based on the consensus recommendation from 39 brokerage firms, Spotify Technology SA's (SPOT, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Spotify Technology SA (SPOT, Financial) in one year is $250.41, suggesting a downside of 56.39% from the current price of $574.25. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Spotify Technology SA (SPOT) Summary page.
