Spotify Technology (SPOT) has multiple structural growth drivers, including an increase in monthly active users, monetization of free users, App Store policy shifts, and new revenue tiers, Oppenheimer said in a note emailed Thursday.
The company is expected to lead in global audio streaming due to weak competition in music from Apple (AAPL) and Amazon (AMZN), according to the note.
Oppenheimer expects monthly active user growth of nearly 75 million annually from 2026 to 2030, reaching 17% of the global 15-plus population by 2030, still far below social media peers like Meta (META) and YouTube.
Currently, the company significantly undermonetizes its free tier and it could either grow ad revenue or adopt a minimal subscription model, the firm added.
Oppenheimer upgraded its rating on Spotify to outperform from perform with an $800 price target.
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