KeyBanc Stands Firm on Spotify (SPOT) with Bullish Outlook

Spotify Technology SA (NYSE:SPOT) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 8, KeyBanc reaffirmed its Overweight rating and $830 price target for Spotify (NYSE:SPOT).

The firm believes market consensus is underestimating Spotify’s medium-term growth and margin potential. Ahead of Q3 earnings on November 4, KeyBanc expects signs of stronger engagement, improving gross margins from the current 31.7%, and monetization strategies beginning to take effect by late 2025 and early 2026.

Looking forward, KeyBanc forecasts high-teens revenue growth for Spotify in 2026 and 2027. While it made slight downward revisions to revenue and profit estimates due to ARPU phasing, its operating profit projections of €3.14 billion for 2026 and €4.25 billion for 2027 remain 7% and 9% above consensus, respectively.

Spotify Technology SA (NYSE:SPOT) is a global audio streaming company. The platform serves more than 600 million monthly active users worldwide, making it the largest music streaming service by market share. Spotify generates revenue from subscriptions, advertising, and partnerships.

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Disclosure: None. This article is originally published at Insider Monkey.