Yahoo Finance UK’s Pedro Goncalves writes:
Spotify’s shares were trading higher ahead of the US market open, following a 5% increase in the previous session, as analysts raised their price target in anticipation of the company’s Q2 earnings report.
Guggenheim Securities analyst Michael Morris reaffirmed his “buy” rating on the stock and lifted his 12-month price target to $840 from $725. In a note to clients on Wednesday, Morris expressed confidence in Spotify’s growth trajectory. “Our conviction in the mid- and long-term growth opportunity at the global streaming audio leader remains intact,” he said.
Morris highlighted several factors fuelling his optimism, including Spotify’s “core pricing power, potential tier expansion, expanded delivery of audio formats (led by audiobooks and podcasts), and the early-stage commerce opportunity presented by app-store changes.”
Spotify stock reached a milestone on Wednesday, achieving its third consecutive record high. The company is set to release its second-quarter 2025 results and shareholder presentation on Tuesday, July 29, before the market opens.