Spotify Technology (SPOT) offered refreshed 2030 financial targets at its Investor Day, expected to be driven by broader monetization across pricing, subscription tiers, add-ons, and AI tools that enable differentiated personalization, UBS Securities said.
The company's mid-teens FX-neutral revenue compound annual growth rate target and gross margin forecast of 35% to 40% by 2030 are expected to be supported by subscription tiers and sustained premium conversion from an under-penetrated user base, analysts wrote in a Thursday research note.
The company has runway across developed and emerging markets and expects to reach the 1 billion monthly active user target before 2030. Management also expects double-digit advertising revenue growth beginning in H2, helped by its programmatic platforms, according to the note.
UBS has a buy rating on the stock with a $735 price target.
Shares of Spotify were up more than 8% in Friday afternoon trading.
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