Spotify Technology Price Target Raised to $730 by Baird Analysts

Spotify Technology's price target has been raised by Baird from $700 to $730, reflecting a 4.29% increase. The analyst maintains an "Outperform" rating, indicating continued confidence in the company's future performance. The average one-year target price for Spotify Technology SA is $644.27, with an average brokerage recommendation of 2.2, also indicating "Outperform" status. The estimated GF Value in one year is $263.50, suggesting a 56.14% downside from the current price.

In a significant move, Baird has elevated its price target for Spotify (SPOT) shares from $700 to $730, representing a 4.29% increase. The analyst firm has maintained its "Outperform" rating, signaling continued confidence in the company's future performance [1].

The average one-year target price for Spotify Technology SA (SPOT) stands at $644.27, with a high estimate of $798.55 and a low estimate of $377.84. This average target implies an upside of 4.93% from the current price of $613.98. The consensus recommendation from 39 brokerage firms also indicates an "Outperform" status, with an average rating of 2.2 [1].

In contrast, GuruFocus estimates the GF Value for SPOT in one year to be $250.05, suggesting a downside of 59.27% from the current price of $613.98. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at, based on historical multiples and future estimates of the business' performance [1].

Spotify reported strong subscriber growth in the first quarter of 2025, with the highest Q1 net adds since 2020, driven significantly by emerging markets. The company achieved a 15% year-on-year revenue growth on a constant currency basis, with premium revenue rising 16% due to subscriber growth and ARPU gains. Spotify's gross margin improved to 31.6%, surpassing guidance and expanding by 400 basis points year-on-year [1].

However, the macroeconomic environment remains uncertain, which could potentially impact Spotify if extreme conditions arise. Advertising revenue growth was modest at 5% year-on-year, with some softness in advertising pricing noted. Operating income was impacted by higher-than-forecasted social charges, which were EUR 58 million above expectations [1].

Spotify's shares experienced a 3.5% drop following the earnings announcement, closing at $576.94. However, the stock has since rebounded, with the current price at $604.15, reflecting an increase of 4.72% or $27.21. Today, SPOT has traded between a low of $565.02 and a high of $605.69. Over the past year, the stock has seen a high of $652.63 and a low of $280.66, indicating significant volatility [2].

References:
[1] https://www.gurufocus.com/news/2820194/spotify-spot-price-target-increased-by-baird-outperform-rating-maintained-spot-stock-news
[2] https://site.financialmodelingprep.com/market-news/spotify-technology-financial-performance-price-target-overview