Spotify’s Strategic Growth Makes It a Top Pick in Media and Entertainment: Analysts Stay Bullish
Spotify stock gets Buy rating from Morgan Stanley and Barclays as analysts cite innovation, AI growth, and profitability through 2028.
Spotify earns bullish analyst ratings as innovation, AI integration, and user growth drive strong profitability outlook.
Global streaming leader Spotify continues to impress Wall Street, with Morgan Stanley analyst Benjamin Swinburne reaffirming a Buy rating on the company’s stock, citing strong growth momentum and long-term profitability prospects.
According to Swinburne, Spotify’s steady expansion is driven by product innovation, user engagement, and revenue diversification. The analyst noted that Spotify’s consistent push toward higher-margin segments and enhanced personalization powered by generative AI is helping the company expand its user base and improve operational efficiency.
Spotify’s accelerated product development cycle is contributing to rapid monthly active user growth, reflecting the platform’s ability to attract and retain listeners in a competitive market. Swinburne projects sustainable revenue growth in the low to mid-teens, alongside robust EBIT growth through 2028, reinforcing Spotify’s status as a top pick in the media and entertainment sector.
In addition to Morgan Stanley’s optimistic view, Barclays has also maintained a Buy rating on Spotify, setting a price target of $700, signaling continued investor confidence in the company’s long-term strategy.
Swinburne, who covers the Communication Services sector including major players like TKO Group Holdings and T-Mobile US, has a track record of 11.7% average returns and a 55.79% success rate on his stock recommendations, according to TipRanks data.
