Spotify Technology stock approached a buy point on Wednesday after three Wall Street analysts raised their price targets on the streaming music leader.
On Wednesday, Deutsche Bank and UBS upped their price targets on buy-rated Spotify stock. Guggenheim Securities increased its price target on Spotify on Tuesday.
On the stock market today, Spotify stock advanced 5.9% to close at 490.69.
Spotify stock has formed a flat base with a buy point of 506.47, according to IBD MarketSurge. That buy point is also the stock's all-time high, reached on Dec. 4.
Deutsche Bank analyst Benjamin Black raised his price target on Spotify stock to 535 from 500. Black said he likes Spotify for its durable top-line growth and inflecting margins. He noted the positive impact of subscription price increases and a possible new superpremium service coming.
Meanwhile, UBS analyst Batya Levi raised her price target on Spotify stock to 540 from 485.
"We remain bullish on SPOT shares in '25," she said in a client note. Last year, Spotify made solid financial progress, with strong revenue growth and a pivot to profitability, she said.
Levi expects Spotify's momentum to continue this year, supported by subscription adds and product enhancements.
"We expect gross margins to continue to expand, albeit at a slower pace, as the company invests in its partner program," Levi said.
She added, "We also see a number of potential catalysts ahead, including (1) the eventual launch of premium/superfan tiers, (2) additional price increases with product enhancements rollout (including expansion of audiobook offering into new markets), (3) potential upside from changes to family plans and (4) improved advertising trends as programmatic partnerships scale."
Spotify stock is on the IBD Tech Leaders list. It also is on IBD's Leaderboard and SwingTrader lists.
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