Spotify Technology stock has struggled to maintain gains since the streaming music leader delivered a mixed second-quarter report in late July. But Wall Street analysts are still optimistic about the company's prospects.
In a client note Friday, Bernstein analyst Ian Moore reiterated his outperform rating on Spotify stock with a price target of 840.
"Discovery is a cornerstone of Spotify's unassailable moat in music streaming," Moore said. "Spotify's competitive edge in discovery is built on its unparalleled set of proprietary audio consumption data."
On the stock market today, Spotify stock rose 0.9% to close at 696.40. With the advance, it edged above its 50-day moving average line, a key technical level.
Spotify still has knobs left to turn to get its stock to move higher, Guggenheim analyst Michael Morris said in a report last week.
Morris calls Spotify stock a "best idea" with a buy rating and price target of 850.
Potential revenue and profit expanders for Spotify include price increases and a rumored superfan premium service level, Morris said.
Spotify recently rolled out price increases in Europe, Asia and elsewhere.
Spotify Stock Has Middling Composite Rating
"We expect that the company will announce a significantly broader set of price increases before year-end, inclusive of the United States, the United Kingdom and Canada," Morris said. "As Spotify goes through a round of pricing into 2026 we expect investor confidence to build in the longer-term sustainability and visibility of the business model, driving share appreciation."
In addition to service price hikes and the superfan tier, Spotify could better monetize its advertising-supported service, Morris said.
In the second quarter, Spotify led the global music streaming market with 34.5% market share, Guggenheim reported. Alphabet's YouTube Music was second with 16.6% share, followed by Tencent Music Entertainment at 15.5% and Apple's Apple Music at 12.9%.
Spotify stock ranks second out of 20 stocks in IBD's Computer Software-Education/Media industry group, according to IBD Stock Checkup. But it has a mediocre IBD Composite Rating of 58 out of 99.
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