Spotify (SPOT) PT Raised to $860 at Benchmark

(Updated - November 5, 2025 9:50 AM EST)

Benchmark analyst Mark Zgutowicz raised the price target on Spotify (NYSE: SPOT) to $860.00 (from $800.00) while maintaining a Buy rating.

The analyst commented, "SPOT’s 3Q results and 4Q guidance indicated Premium ARPU strength, however the 4Q total revenue guidance was weakened (1% below consensus) from ad supported revenue and total subs guidance (below our ests.) attributable to churn from pricing. The -5pt 3Q Ad-Supported revenue miss includes a ~-5pt y/y headwind from Spotify exclusives reorganization, which SPOT officially lapped Sept. ’25 on top of the fact that the segment continues to struggle with soft pricing. These dynamics push material ad acceleration potential to 2H’26E after DSPs are onboarded in “early ‘26E”. Note, most of SPOT’s incremental Ad-Supported growth y/y is being driven by its automated sales channels, e.g., SAX/Spotify Ad Manager, indicative of emerging programmatic demand vs. direct. In 3Q, SPOT closed the remaining of its music negotiations with record labels. SPOT focused on “modernizing” licensing arrangements with the top five U.S. music publishers including securing broader video rights which it views as a “critical strategic objective” to unlock more product and feature capabilities, e.g., podcast content licensing to Netflix (NFLX: covered by Dan Kurnos).."

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