Maria Ripps, an analyst from Canaccord Genuity, maintained the Buy rating on Spotify Technology SA (SPOT – Research Report). The associated price target was raised to $700.00.
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Maria Ripps’s rating is based on Spotify’s strong quarterly performance and future growth prospects. The company exceeded expectations in key areas such as monthly active users (MAUs), premium subscribers, total revenue, and gross margin, which were all higher than the guidance provided. Spotify also reported record free cash flow for the fiscal year 2024, driven by subscriber gains and favorable currency exchange rates.
Furthermore, Spotify is making strategic investments in new music experiences, video content, and a higher-priced premium tier, which are expected to drive growth in 2025. The company’s outlook for user, subscriber, and revenue growth aligns with market expectations, while its gross margin and operating income projections surpass consensus. These factors, combined with potential ad revenue growth and consistent product improvements, support Maria Ripps’s Buy rating for Spotify.
According to TipRanks, Ripps is a 5-star analyst with an average return of 24.0% and a 50.15% success rate. Ripps covers the Communication Services sector, focusing on stocks such as Spotify Technology SA, Meta Platforms, and Netflix.
In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $670.00 price target.