Goldman Sachs Downgrades Spotify (SPOT) Despite Higher Target

Goldman Sachs cut its rating on Spotify (SPOT) to Neutral from Buy, even as it raised the price target slightly to $770 from $765. The firm said the stock’s strong run has balanced risk and reward, limiting further upside in the near term.

The downgrade comes after Spotify shares surged in recent months on improving profitability and subscriber growth, which Goldman noted are now largely reflected in the valuation.