Jefferies analyst James Heaney raised the price target on Spotify (NYSE: SPOT) to $620.00 (from $600.00) while maintaining a Buy rating.

The analyst comments "We are favorable on SPOT's Q3 set-up, as peaking opex growth, advertising rev growth improvement, and a likely AI product launch in the next few months should be positives for the stock. In our view, investors are looking for Q3 gross margin of ~33.1% (vs. guide 32.9%) with a Q4 guide of 33.7%, which is below the street's 33.9%. We reiterate our Buy rating and raise our PT to $620, which implies 26x our FY27 FCF (vs. 20%+ FCF CAGR). "