Jeffrey Wlodarczak, an analyst from Pivotal Research, reiterated the Buy rating on Spotify Technology SA (SPOT – Research Report). The associated price target was raised to $725.00.
Jeffrey Wlodarczak’s rating is based on Spotify’s outstanding performance and promising future prospects. The company reported significantly better-than-expected results for the fourth quarter, including substantial gains in net new premium and total monthly active users, exceeding both internal and consensus forecasts. This strong growth is accompanied by a notable increase in revenue and a doubling of free cash flow year-over-year.
Furthermore, Spotify’s management anticipates continued user growth and profitability improvements despite ongoing investments. The company is well-positioned in the global audio streaming market, leveraging its superior user interface and recommendation engine. Additionally, Wlodarczak highlights the potential for Spotify to diversify and enhance its offerings, which could further increase user engagement and monetization. These factors justified a substantial increase in the target price and reinforced the Buy rating.
According to TipRanks, Wlodarczak is a 4-star analyst with an average return of 3.5% and a 54.62% success rate. Wlodarczak covers the Communication Services sector, focusing on stocks such as TKO Group Holdings, Netflix, and Spotify Technology SA.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $550.00 price target.