Wall Street analysts peg Spotify’s upside at 32.12%, based on a consensus price target of $760.23. While historical studies suggest price-target-driven returns can be unreliable, the company has seen a consistent upward trend in earnings estimate revisions over the past two quarters, indicating that investor sentiment may soon translate into stock gains.

In Q3, Spotify reported earnings per share of $3.83, surpassing the consensus estimate of $1.87 by $1.96. Revenue climbed 7.1% year-over-year to $5.01 billion, ahead of the $4.23 billion consensus. The company posted a net margin of 8.46% and a return on equity of 21.68%. Analysts now forecast full-year earnings of $10.30 per share.

Abacus FCF Advisors reduced its Spotify stake by 11.5%, selling 3,468 shares to end the quarter with 26,735 shares (2.5% of its portfolio), valued at $18.66 million. Simplify Asset Management initiated a position worth $574,000. Albion Financial Group lifted its holding by 80% to 45 shares ($31,000 value), Annex Advisory Services added 4,202 shares (7.8%) bringing its total to 58,186 shares ($40.61 million), FFG Partners increased its stake by 7.4% to 16,445 shares ($11.48 million), and Ethic Inc. grew its position by 3.1% to 22,508 shares ($15.71 million). Institutional investors now own 84.09% of the company’s stock.

Citigroup raised its target from $715 to $750 and maintained a "neutral" rating, while Weiss Ratings reiterated a "hold (c+)". Cantor Fitzgerald lifted its objective from $640 to $675 with a "neutral" stance, Wall Street Zen upgraded to "buy", and Pivotal Research trimmed its target from $900 to $875 but kept a "buy" rating. Overall, two analysts rate Spotify as a Strong Buy, 23 as Buy and nine as Hold, resulting in an average rating of Moderate Buy.