Citizens raised its price target on Spotify stock to $625 from $600, maintaining a Market Outperform rating.
The firm highlighted Spotify's integration of AI across its product suite, including new remix and cover features via a partnership with Universal Music Group.
Spotify leverages 20 years of proprietary taste data and 3.4 trillion daily signals to drive retention and monetization.
The stock trades at 19.3 times estimated 2027 EBITDA, with a PEG ratio of just 0.22, indicating strong value.
Spotify's Investor Day on Friday unveiled new growth targets and AI monetization plans.
