Citi analysts increased their price target for Spotify (NYSE:SPOT) to $310 from $255 while maintaining their Neutral rating on the stock. The analysts noted that Spotify's stock has performed well as investors respond positively to cost controls, welcome price increases, and show growing interest in emerging opportunities such as audiobooks, video ads, and education.

While the analysts believe the Street has underestimated Spotify's revenue for 2024, they suggest that the forecasts for 2025 and 2026 may be overly optimistic. The primary discrepancy between their projections and the Street's lies in the expected moderation of premium net additions.