Wall Street analysts consistently forecast bullish outcomes for Spotify, with price targets reflecting significant optimism about the streaming giant’s future performance.
Despite Goldman Sachs recently downgrading the streaming platform, numerous financial experts maintain extraordinary confidence in Spotify’s trajectory, establishing targets that approach or exceed $900 per share ahead of the company’s third-quarter earnings announcement. This widespread bullishness stands in stark contrast to Goldman’s more cautious stance, creating a fascinating division among market observers regarding the audio streaming leader’s near-term prospects.
The consensus among 31 to 38 analysts covering Spotify reveals an average price target ranging from $723 to $778, suggesting potential upside between 6% and 15.5% over the next 12 months. Remarkably, Oppenheimer recently raised its target to $800, demonstrating renewed confidence in Spotify’s business model and growth potential. Bank of America also stands among the most optimistic institutions, having set a high target at $900.
The most optimistic projections reach as high as $900, while more conservative estimates bottom out between $416 and $484, highlighting significant variability in market expectations.
An overwhelming majority of analysts rate Spotify as either “Buy” or “Strong Buy,” with approximately 30-35% issuing “Strong Buy” recommendations and 40-45% offering “Buy” ratings.
Only about 20-25% maintain “Hold” positions, with virtually no analysts suggesting investors should sell their shares. This distribution indicates broad confidence in Spotify’s competitive positioning within the streaming landscape and its ability to continue expanding its user base. Analysts particularly value Spotify’s ability to generate music streaming royalties for artists while maintaining an attractive platform for subscribers. Many investors appreciate Spotify’s continued innovation with playlist pitching capabilities that help independent artists gain exposure to new audiences.
HSBC stands out as particularly bullish, having issued an extraordinary $1350 target in mid-2024, though this figure represents an extreme outlier compared to the median targets clustered around $720-$750.
Forecast timelines typically extend 12 months forward, but some analysts provide longer-term projections stretching into 2025 and beyond, with expectations generally trending upward. Long-term forecasts suggest Spotify could potentially reach over $3,000 per share by late 2028 according to the most optimistic market analyses.
The range of price targets reflects differing assumptions about Spotify’s subscriber growth rates, revenue diversification strategies, and ability to navigate challenging market conditions, underscoring both enthusiasm and uncertainty about precisely how high the streaming platform’s valuation might climb.
