Loop Capital has raised its price target for Spotify Technology S.A. (NYSE: SPOT) to $250, a significant increase from the previous $165 target. However, the firm maintains a Hold rating on the audio streaming platform’s shares.
The upward revision in the price target reflects Loop Capital’s positive outlook on Spotify’s revenue growth potential. The company’s recent price hikes in various markets, including a second increase within a year in the U.S., are expected to boost its revenue streams.
Additionally, Spotify’s venture into the audiobook market in the U.S. has been met with success. Loop Capital analysts believe this new business line will contribute to the company’s growth.
Despite the positive developments and raised estimates, Loop Capital advises investors to maintain their current positions in Spotify’s stock. The Hold rating suggests a cautious stance on the company’s valuation at this time.
Investors and market observers will monitor Spotify’s performance closely, considering its strategic pricing adjustments and expansion into new content areas. The increased price target indicates a more optimistic view on Spotify’s ability to grow revenue and profit in the near future.
