Jefferies Boosts Spotify (NYSE: SPOT) Price Target to $600 Amid Strong Growth Outlook

Font: Financial Modeling Prep  • May 21, 2026

• Analyst firm Jefferies has raised its price target for Spotify to $600, indicating a potential 22.47% upside for the music streaming giant.
• Spotify aims for mid-teens annual revenue growth and 35% to 40% gross margins by 2030, supported by a new AI-driven partnership with Universal Music Group.
• The company's shares surged 14% following the news, reflecting strong investor confidence in its strategic initiatives and market position.

Analyst firm Jefferies raises its price target for Spotify (NYSE: SPOT) to $600 from a previous target of $540. Spotify, a leading global music streaming service and podcast platform, provides access to millions of songs and podcasts. With the stock priced at $489.93, this new target represents a potential upside of approximately 22.47%, signaling a positive investment outlook.

This optimism follows Spotify's recent investor day, as highlighted by Barron's. The company outlined ambitious goals through 2030. These include mid-teens annual revenue growth and gross margins between 35% and 40%. Gross margin is the profit a company makes on its sales before other costs are deducted, a key metric in stock analysis.

A key driver for this outlook is a new partnership with Universal Music Group, as highlighted by TechCrunch. The deal allows fans to create AI-generated song remixes. This feature will be a paid add-on for Premium subscribers, with artists sharing in the revenue generated from their work.

This strategy of making "upfront agreements" with major labels helps Spotify stand out from competitors like Suno. Following the news, Spotify shares surged as much as 14%, as highlighted by Invezz. The stock closed the day with an increase of 13.06%, or $56.61 per share, demonstrating strong stock performance.

On the day of the announcement, Spotify traded between $422.61 and $510.66. The company has a market capitalization of around $100.84 billion, which is the total value of all its shares. The day's trading volume was approximately 7.3 million shares, showing high investor interest.