Spotify (SPOT) PT Raised to $850 at Guggenheim

Guggenheim analyst Michael Morris raised the price target on Spotify (NYSE: SPOT) to $850.00 (from $800.00) while maintaining a Buy rating.

The analyst commented: 'Late last week Spotify announced price increases in several markets, including Germany, Austria and Switzerland, as we had previewed (5/12 – Note). Increases ranged from 8% to 22% across plans and markets as summarized within, and is consistent with prior pricing changes in the U.S. and other markets where Spotify has expanded its consumer offering. We believe that similar to other expanded-service markets, these price increases are gross margin accretive for Spotify. We estimate that the effected markets account for ~10% of the company’s total premium subscribers. Separately, earlier in the month and post-earnings, Spotify announced price increases across a broad range of regions, which we believe covered the music offering for ~25% of global subscribers that were not impacted in the 3Q23 price increase. We continue to expect another round of price increases to be announced in Spotify’s largest markets, including the U.S., before year-end, with the financial impact to begin in early 2026. This progress is consistent with our big-picture positive view of the industry as we have described (8/13 – Music Wrapped Unwrapped Note). We raise our price target on Spotify to $850 from our prior $800 reflecting upward long-term revisions to our revenue and profit estimates as summarized within."

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