EARN25

Spotify Stock Soars Following Analyst Praise

The firm also upped its price target to $315 from $215

Deputy Editor
Sep 10, 2020 at 10:24 AM
facebook X logo linkedin


The shares of popular music-streaming service Spotify Technology SA (NYSE:SPOT) are, at last look, up 7.9% at $264.22. This pop comes after Credit Suisse upgraded the stock to "outperform" from "neutral" after the close yesterday and hiked its price-target to $315 from $215. The analyst in coverage raised Spotify's 2021 subscriber forecast by 4 million, citing the "Joe Rogan Experience" podcast, becoming exclusive to Spotify in January, as well as those of the 60 million currently offered free Spotify in Russia -- through mobile carrier MTS -- that will become paying subscribers. 

After coming within a chip-shot of its July 22 record high of $299.67 at the start of this month, SPOT has since pulled back to familiar support at the $240 region. Still up 63.7% year-to-date, the equity is contending its 60-day moving average, which, before this week, it hadn't closed below since mid-April. 

Nine of the 18 analysts in coverage sport a "buy" or better rating on Spotify stock, with four a "hold" and five a "strong sell." Meanwhile, another round of price-target hikes could be in order, as the 12-month consensus price target of $259.18 is now a 1.9% discount to current levels. 

What's more, the stock's Schaeffer's Volatility Scorecard (SVS) sits high at 85 out of 100. This means SPOT has tended to exceed option traders' volatility expectations during the past year -- a boon for option buyers.
 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!