Goldman Sachs analyst Eric Sheridan has raised the forecast on Spotify Technology SA (NYSE: SPOT), citing user engagement growth and the potential revenue from a deluxe tier. He maintained a Buy rating on Spotify with a price target of $430, up from $425.
Sheridan highlighted that Spotify’s stock performance has been strong, outperforming the market over the past 12 months. He mentioned that Spotify is the global audio platform leader, which is expected to drive user growth, engagement, and pricing power for the company.
Following a restructuring in late 2023, Spotify is showing improvements in gross and operating margins, with opportunities for margin growth in the future. Sheridan also mentioned the potential for a more consistent shareholder return policy in line with its peers.
Investors are interested in management commentary on pricing, product decisions, gross margin results, and the company’s position in the audio landscape. Sheridan projected fiscal 2024 revenue of 15.72 billion euros and EPS of 5.87 euros for Spotify.
At the last check, SPOT stock was down 1.94% at $364.24. Analysts have varying ratings on Spotify, with some maintaining a Buy rating while others suggest holding or underweight positions.
Overall, Goldman Sachs is optimistic about Spotify’s future growth potential and the impact of user engagement and revenue from deluxe tier offerings. Investors will be watching closely for updates on the company’s financial performance and strategic decisions in the upcoming earnings report.