The rally in Spotify Technology (SPOT) stock can continue this year, say multiple Wall Street analysts.
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Shares of the audio streaming platform enjoyed a blockbuster year in 2024, more than doubling and posting their best annual performance ever. Propelled by strong subscriber growth, solid earnings, and cost controls, SPOT stock’s 138% gain last year trounced the 23% increase in the benchmark S&P 500.
Despite the outsized gains over the past year, analysts see more upside ahead for Spotify and its shareholders. Batya Levi, an analyst at UBS (UBS) raised the price target on SPOT stock to $540 from $485 while reiterating a Buy rating on the shares. That new price target is 16% above where the stock currently trades.
Levi wrote in a note to clients that Spotify’s revenue should grow about 13% in 2025, supported by the addition of nearly 25 million premium subscribers. The UBS analyst also likes that Spotify continues to expand its podcast and audiobook offerings.
UBS isn’t alone in its bullish outlook on SPOT stock. Benjamin Black, a five-star rated analyst at Deutsche Bank (DB), has named SPOT stock a “top pick” for 2025. He rates the stock a Buy with a $535 price target. “Spotify’s value proposition still has more room for additional monetization,” wrote Black.
Is SPOT Stock a Buy?
Spotify stock has a consensus Strong Buy rating among 25 Wall Street analysts. That rating is based on 19 Buy and six Hold recommendations issued in the last three months. There are no Sell ratings on the stock. The average SPOT price target of $505.17 implies 3.09% upside from current levels.
