Jefferies lifts Spotify target to USD 620: Spotify stock sits 25.57 percent below its high

Published on 10/20/2026 at 13:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Spotify stock costs EUR 462.75 on October 20, 2026, 0.59 percent below its Xetra close. Third-quarter results are due before market open on October 22, 2026.

Margin and earnings setup

Jefferies raised its Spotify target from USD 600.00 to USD 620.00 on October 20, 2026.
Spotify reported EUR 4.78 billion in second-quarter 2026 revenue and EUR 655.00 million in operating profit.
Spotify stock trades at EUR 462.75 at 1:29 p.m. CEST at Lang & Schwarz on October 20, 2026, 0.59 percent below the Xetra close of October 19, 2026.

SPOT, LU1778762911, Illustration mit AI erstellt.

Spotify (LU1778762911) stock trades at EUR 462.75 at Lang & Schwarz on October 20, 2026 at 1:29 p.m. CEST, minus 0.59 percent versus the Xetra close of October 19, 2026 at EUR 465.50. Investing.com reported on October 20, 2026 that Jefferies raised its Spotify price target from USD 600.00 to USD 620.00 and maintained a Buy rating.

Target raise tests margin expectations

Jefferies pointed to improving advertising revenue and peaking operating-expense growth ahead of Spotify's third-quarter report, while its margin view remains demanding. The firm cited expected third-quarter gross margin of 33.1 percent against Spotify's 32.9 percent guidance, according to Investing.com.

On the NYSE, Spotify's USD 518.76 quote on October 19, 2026 stood 25.57 percent below its USD 696.95 52-week high. The market capitalization was USD 106.6 billion on that date, giving the target debate a valuation backdrop.

Three events set the earnings test

On August 4, 2026, Spotify's second-quarter revenue reached USD 5.56 billion and operating income was USD 762.00 million, while Premium subscribers reached 300 million, according to TechJuice. On October 7, 2026, Spotify announced that audiobooks would expand from 22 markets to more than 180 by year-end, according to Spotify. On October 20, 2026, Jefferies lifted its target to USD 620.00 from USD 600.00.

What does October 22 test?

Yahoo Finance reported that Spotify's third-quarter outlook called for 788 million monthly active users, 305 million Premium subscribers and EUR 5.0 billion in revenue. Those figures make advertising and margin delivery the clearest tests of whether the stronger profit profile can continue.

The next scheduled event is Spotify's third-quarter 2026 results before market open on October 22, 2026, followed by the 8:00 a.m. Eastern Time question-and-answer session, according to Spotify. Audiobook availability in Portugal is scheduled for November 12, 2026, according to Publishers Weekly.

Stock stays below its yearly high

The margin setup now carries more weight than subscriber growth alone because Jefferies' target increase depends on better advertising and operating leverage. Spotify stock was trading at EUR 462.75 at Lang & Schwarz on October 20, 2026 at 1:29 p.m. CEST, 0.59 percent below the Xetra close of October 19, 2026 at EUR 465.50. The further course of trading is shown by the continuously updated real-time quote of Spotify stock.