KeyBanc analyst Justin Patterson reiterated an Overweight rating and $680.00 price target on Spotify (NYSE: SPOT).

The analyst commented: "The Sound of AI Music Reinforces Spotify's Distribution & Data Edge; As Suno's new model launches shift focus back to AI music, we revisit Spotify's drivers. In our view, distribution and personalization remain key advantages that create a natural launch point for add-on services. We estimate AI music could drive a 2% ARPU lift in the first 12-18 months, with potentially faster growth if superfan adoption takes off. Bigger picture, we view product innovation as driving a ~15% revenue growth and ~30% EPS growth profile over the mediumterm. We maintain our OW rating/$680 PT (4.4x 2028E EV/S)."

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Shares of Spotify closed at $523.00 yesterday.