Spotify's shares saw a significant increase of 5.3% to $487.90 after UBS upgraded its rating and raised the price target from $485 to $540.

UBS expects that the upcoming Q4 results will demonstrate a faster pace of margin expansion and strong subscriber growth. Looking ahead to the first quarter, UBS predicts that Spotify's outlook will show continued solid sales growth, although margins may decline due to seasonal factors and the introduction of its partnership program.

According to LSEG data, out of 39 analysts, 28 rate the stock as a "buy" or higher, 9 recommend a "hold," and 2 suggest a "sell," with a median forecast of $507.5. It is worth noting that Spotify's stock increased by 138% in 2024.