Spotify Wrapped 2023 With 130% Returns And A Restructure: 3 Analysts Rate It A Buy

Spotify SPOT stock has delivered 130% returns in 2023. Analysts rate it a Buy as organizational changes align with future goals.

Spotify Technology SA (NYSE: SPOT) has had a good run in 2023.

The company’s stock delivered 130% returns to investors over the past year. Through 2023, it enhanced its business by implementing changes such as raising prices, expanding its base of ad-supported and Premium listeners, and boosting profitability.

In a Dec. 4, 2023 update, Spotify announced certain organizational changes to its business. Per CEO Daniel Ek’s announcement, “To align Spotify with our future goals… I have made the difficult decision to reduce our total headcount by approximately 17% across the company.” Ek believes a leaner structure will allow Spotify to invest its profits more strategically back into the business.

Related: Why This Spotify Analyst Is Bullish On Restructuring Plans, Despite Sliding Shares

The announcement was taken positively by analyst reviewing the stock. 3 analyst Buy calls over the past month hint at the optimism around the stock.

• On Jan. 2, 2024, Mark Zgutowicz of Benchmark maintained a Buy while raising his price target on SPOT stock from $202 to $260. Zgutowicz sees Spotify poised for strong performance in fiscal year 2024. The analyst predicts that the company will surprise investors with its ability to leverage operational expenses and introduce new pricing tiers.
• On Dec. 21, 2023, Jeffrey Wlodarczak of Pivotal Research upgraded Spotify stock to Buy with a price target of $265. The company’s renewed focused on financial discipline, continued strong results and the ability to take price without significant churn were cited as reasons for the upgrade.
• Dec. 11, 2023 saw Barton Crockett of Rosenblatt Securities upgrade the stock to a Buy with a price target of $300. The large-scale restructuring plan currently in the works could cause margins to "explode," according to Rosenblatt Securities.

Of the 33 Wall Street analysts who have rated Spotify stock over the past 90 days, consensus ratings stand at a Buy with an average price target of $211.60, implying about 10% upside from current price levels.

SPOT Price Action: Spotify stock was trading at around $192 at the time of publication.

Now Read: Analyzing Beyond Spotify’s Restructure: Unveiling 3 Stocks With Comparable Financial Challenges

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