Spotify Target Raised to $600 with 22.47% Upside on Universal AI Remix Deal
Jefferies raised its Spotify price target to $600 from $540, implying a 22.47% upside after shares rallied 13.06% to close with a $56.61 gain. Spotify projects mid-teens annual revenue growth and 35–40% gross margins by 2030, boosted by an AI-driven remix partnership with Universal Music Group.
1. Price Target Increase and Stock Reaction
Jefferies boosted Spotify’s price target to $600 from $540, signaling a 22.47% potential upside. Shares surged as much as 14% intraday and closed up 13.06%, a $56.61 rise, driving market capitalization to roughly $100.84 billion on 7.3 million shares traded.
2. Long-Term Growth Projections and AI Partnership
Spotify outlined plans for mid-teens annual revenue growth and 35–40% gross margins by 2030, underpinned by a new AI-driven song remix feature. The partnership with Universal Music Group will offer paid add-on remixes for Premium subscribers, with revenue shared directly with artists.