Spotify's stock price is climbing and is close to reaching its highest point ever on the New York Stock Exchange. This increase follows a positive update from UBS.

At 11:15 a.m. Wall Street time, shares rose by 5%, getting closer to the previous peak of over $500 seen in December. UBS has increased its price target for Spotify from $485 to $540, suggesting a potential upside of 17.7%. The firm predicts that Spotify will gain 23 million new paying subscribers in 2025, slightly lower than the 24 million projected for 2024. UBS also expects the company to improve its profit margins.

Furthermore, UBS forecasts that Spotify will have a free cash flow of three billion euros in 2025, up from two billion euros in the previous year. UBS maintains a buy recommendation for Spotify's stock.