25 Analysts Assess Spotify Technology: What You Need To Know
Analysts' ratings for Spotify Technology (NYSE:SPOT) show a mix of bullish and bearish sentiments from 25 analysts. The average 12-month price target is $805.36, up 9.06% from the previous target. Recent actions include raises and lowers in ratings and price targets by various analysts. Spotify, with nearly 700 million active users, faces challenges in profitability, reflected in its negative net margin and ROE. Despite a positive revenue growth trend of 10.14%, its financial performance metrics indicate areas for improvement. Analysts provide insights based on market conditions and company performance.
Analysts' ratings for Spotify Technology (NYSE:SPOT) over the last quarter vary from bullish to bearish, as provided by 25 analysts.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 11 | 12 | 2 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 3 | 5 | 1 | 0 | 0 |
| 2M Ago | 6 | 5 | 0 | 0 | 0 |
| 3M Ago | 1 | 2 | 1 | 0 | 0 |
Analysts have set 12-month price targets for Spotify Technology, revealing an average target of $805.36, a high estimate of $900.00, and a low estimate of $640.00. This current average has increased by 9.06% from the previous average price target of $738.46.
Deciphering Analyst Ratings: An In-Depth Analysis
A comprehensive examination of how financial experts perceive Spotify Technology is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Michael Morris | Guggenheim | Raises | Buy | $850.00 | $800.00 |
| Kannan Venkateshwar | Barclays | Lowers | Overweight | $750.00 | $800.00 |
| Manan Gosalia | Morgan Stanley | Lowers | Overweight | $800.00 | $850.00 |
| Batya Levi | UBS | Lowers | Buy | $850.00 | $895.00 |
| Mark Zgutowicz | Benchmark | Lowers | Buy | $800.00 | $840.00 |
| Justin Patterson | Keybanc | Lowers | Overweight | $830.00 | $860.00 |
| Barton Crockett | Rosenblatt | Lowers | Neutral | $679.00 | $703.00 |
| Steven Cahall | Wells Fargo | Raises | Overweight | $750.00 | $740.00 |
| Jason Helfstein | Oppenheimer | Announces | Outperform | $800.00 | - |
| Benjamin Black | Deutsche Bank | Raises | Buy | $775.00 | $700.00 |
| Doug Anmuth | JP Morgan | Raises | Overweight | $780.00 | $730.00 |
| Justin Patterson | Keybanc | Raises | Overweight | $860.00 | $640.00 |
| Manan Gosalia | Morgan Stanley | Raises | Overweight | $850.00 | $700.00 |
| Mark Zgutowicz | Benchmark | Raises | Buy | $840.00 | $700.00 |
| Kannan Venkateshwar | Barclays | Raises | Overweight | $800.00 | $650.00 |
| Ian Moore | Bernstein | Raises | Outperform | $840.00 | $825.00 |
| Eric Sheridan | Goldman Sachs | Raises | Buy | $775.00 | $680.00 |
| Maria Ripps | Canaccord Genuity | Raises | Buy | $850.00 | $775.00 |
| Batya Levi | UBS | Raises | Buy | $895.00 | $680.00 |
| Jessica Reif Ehrlich | B of A Securities | Raises | Buy | $900.00 | $700.00 |
| Michael Morris | Guggenheim | Raises | Buy | $840.00 | $725.00 |
| Deepak Mathivanan | Cantor Fitzgerald | Raises | Neutral | $640.00 | $610.00 |
| Jeffrey Wlodarczak | Pivotal Research | Raises | Buy | $900.00 | $800.00 |
| Mark Mahaney | Evercore ISI Group | Raises | Outperform | $750.00 | $650.00 |
| Doug Anmuth | JP Morgan | Raises | Overweight | $730.00 | $670.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Spotify Technology. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Spotify Technology compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Spotify Technology's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Spotify Technology's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Spotify Technology analyst ratings.
About Spotify Technology
Spotify is the leading global music streaming service provider, with nearly 700 million monthly active users and over 250 million paying subscribers, with the latter constituting the firm's premium segment. Most of the firm's revenue and nearly all its gross profit come from the subscribers, who pay a monthly fee to access a music library that consists of most of the most popular songs ever recorded, including all from the major record labels. The firm also sells separate audiobook subscriptions and integrates podcasts within its standard music app. Podcast content is not exclusive and is typically free to access on other platforms. Ad-supported users can access a similar music catalog but cannot customize a similar on-demand experience.
Spotify Technology: Financial Performance Dissected
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Positive Revenue Trend: Examining Spotify Technology's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.14% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -2.05%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Spotify Technology's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -1.34%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Spotify Technology's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.66%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Spotify Technology's debt-to-equity ratio is below the industry average at 0.36, reflecting a lower dependency on debt financing and a more conservative financial approach.
What Are Analyst Ratings?
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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