Spotify Technology S.A. "Previewing the Investor Day" (Buy) Levi

Research evidence excerpt

Spotify Technology S.A. "Previewing the Investor Day" (Buy) Levi

Global Research

18 May 2026ab

Spotify Technology S.A. Equities

United StatesPreviewing the Investor Day

Internet Services

12-month rating Buy

Positive catalyst ahead

At the upcoming investor day on May 21, we expect Spotify to update mid & long- 12m price target US$735.00

term financial targets, outline strategic priorities and provide a path for further

monetization opportunities. Shares have remained under pressure (down 20%+

Price (18 May 2026) US$445.01

YTD) driven by concerns around competitive risks and elevated operating costs amid

higher AI investments. We expect the event to reinforce management's focus on RIC: SPOT.N BBG: SPOT US

delivering differentiated products and features, supporting sustained double-digit

Trading data and key metrics

revenue growth and further operating leverage. We also expect mgmt. to highlight new

52-wk range US$775.90-412.75

AI-driven tools (personalization, prompted playlists, SongDNA, etc) while signaling

additional capabilities in development, particularly as negotiations with the labels to Market cap. US$93.1b

expand AI rights remain ongoing. Shares o/s 209m (COM)

Free float 52%

Updating long-term growth and margin expansion Avg. daily volume ('000) 440

We believe Spotify's expanding product portfolio, enhanced free tier and AI-driven Avg. daily value (m) US$212.2

features support its prior ~1B+ MAU target (UBSe ~10% CAGR to ~1B in '28). Common s/h equity (12/26E) €9.83b

This should expand the top of the funnel and drive conversion to premium P/BV (12/26E) 8.0x

subscriptions (UBSe 8% CAGR to 367M in '28 vs. Street at 7%). Net debt to EBITDA (12/26E) NM

We expect Spotify to guide to mid-teens revenue CAGR over the medium term (vs. EPS (UBS, diluted) (EUR)