Morgan Stanley reaffirms Overweight rating on Spotify and sets $640 price target
Morgan Stanley reiterated its Overweight rating on Spotify Technology SA and issued a $640 price target. The analyst forecast 13% annual revenue growth and a 25% rise in EBITDA, driven by new audiobooks, video podcasts and AI tools. The firm expects net premium subscriber additions of five million in Q3 and eleven million in Q4, and projects earnings of $3.15 per share and revenue of $5.58 billion for the upcoming quarters. Spotify shares rose about 3% after the report.
Why it matters
The $640 target implies roughly 23% upside from the last close, according to Morgan Stanley. The rating reaffirmation and price target helped lift the stock by about 3% on the day.
Key facts
- 1Morgan Stanley reaffirmed its Overweight rating on Spotify and set a price target of $640. tradingview.com
- 2The analyst expects compound annual revenue growth of 13% and EBITDA growth of 25% over the coming years. tradingview.com
- 3Spotify shares gained approximately 3% following the reaffirmation. gurufocus.com
- 4Net premium subscriber additions are projected at five million in Q3 and eleven million in Q4. gurufocus.com
- 5Projected earnings are $3.15 per share and revenue $5.58 billion for the upcoming quarters. gurufocus.com
- 6Spotify’s market capitalization is $110.34 billion. gurufocus.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.