Spotify Technology stock notched its third record high in as many trading days on Wednesday as an analyst raised his price target to keep up.
Guggenheim Securities analyst Michael Morris reiterated his buy rating on Spotify stock and upped his 12-month price target to 840 from 725.
On the stock market today, the streaming music leader slid 1.8% to close at 736.30. Earlier in the session, it hit an all-time high of 759.17.
"Our conviction in the mid- and long-term growth opportunity at the global streaming audio leader remains intact," Morris said in a client note Wednesday. He cited Spotify's "core pricing power, potential tier expansion, expanded delivery of audio formats (led by audiobooks and podcasts) and the early-stage commerce opportunity presented by app-store changes" for his confidence.
On May 2, Spotify stock broke out of a double-bottom base at a buy point of 621.20, according to IBD MarketSurge charts. It had flirted with that buy point for several trading sessions around its first-quarter report. Spotify stock later had a four-weeks-tight entry just above that base, but is now extended from that 669 entry as well.
On Tuesday, Spotify stock closed in the 20%-to-25% profit-taking zone of its breakout, based on IBD trading rules.
Spotify Stock Up After Bullish Report
Last week, Pivotal Research Group analyst Jeffrey Wlodarczak set a Street-high price target on Spotify stock of 900 and kept his buy rating.
Further, Spotify stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
