Spotify Technology stock hit a record high on Wednesday after the streaming music leader scored a fresh buy rating from a Wall Street firm.
Bernstein analyst Ian Moore initiated coverage of Spotify stock with an outperform rating and a price target of 825.
On the stock market today, Spotify stock rose 4.5% to close at 701.08. Earlier in the session, it notched an all-time high of 708.19.
"We continue to see a strong investment case for Spotify built on its proven ability to leverage its sizable market share and quality platform," Moore said in a client note Tuesday. "We believe the business can exercise pricing power sustainably given recent success with minimal churn."
Regular price increases should be a consistent revenue driver for Spotify, he said.
Tailwinds to profits will include steadily growing availability of nonmusic content on the platform.
"We also expect that the highly anticipated superfan subscription tier will move quickly toward an early 2026 launch once Sony gives the necessary approvals," Moore said. He predicted rapid adoption of the higher-priced tier among existing and new subscribers.
In his initiation report on entertainment stocks, Moore also gave outperform ratings to DraftKings, Live Nation Entertainment, TKO Group and Warner Music Group.
Meanwhile, Spotify stock is on the IBD Tech Leaders list.
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