Citi Upgrades Spotify (SPOT) To Buy Citing Price Hikes, Accelerating Buybacks

Spotify Technology (NYSE:SPOT) is one of the stocks that should double by 2030. On January 30, Citi upgraded Spotify to Buy from Neutral with an unchanged price target of $650. The stock’s valuation is now attractive, and consensus estimates are beatable. Citi sees catalysts for Spotify shares due to price increases and accelerating buybacks.

On January 27, MoffettNathanson began coverage of Spotify with a Neutral rating and a $487 price target. The firm noted that 15 years after the rise of music streaming, developed markets have reached significant saturation, signaling that the era of rapid subscriber growth is ending. Consequently, the firm believes the next phase of the company’s development will focus primarily on pricing. The firm further suggested that there is a substantial opportunity for price increases within the current market landscape.

Additionally, on January 20, Barclays reduced the firm’s price target for Spotify to $625 from $700 and kept an Overweight rating. The firm noted that although tactical issues are currently impacting both Disney and Spotify, it anticipates that both companies will be long-term winners as the media industry undergoes significant transformations.

Spotify Technology (NYSE:SPOT), together with its subsidiaries, provides audio streaming subscription services worldwide. It has two segments: Premium and Ad-Supported.

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