Spotify's price target has been increased by UBS to $540 from $485, with a Buy rating on the stock.
Analysts Josh Lipton and Julie Hyman noted that Spotify had a productive 2024, making significant progress towards its financial goals and successfully implementing price increases.
Despite facing challenges from new partner programs in the short term, Spotify is focusing on product enhancements this year.
UBS expects the company to continue expanding its margins in 2025, reflecting confidence in its growth trajectory.