Spotify price target raised to $500 from $370 at Citi

Citi raised the firm’s price target on Spotify (SPOT) to $500 from $370 and keeps a Neutral rating on the shares. Along with updating estimates to reflect Q3 results and the latest outlook, the firm is rolling forward valuation from 2025 to 2026, now incorporating Spotify’s net cash and investments into its valuation, and valuing shares based on the company’s normalized free cash flow, the analyst tells investors. While the firm says it likes Spotify’s strategy and believes the company can continue to execute, it views the risk-reward as “balanced at prevailing levels.”