11 Best Foreign Stocks to Buy According to Hedge Funds

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3. Spotify Technology S.A. (NYSE:SPOT)

Number of Hedge Fund Holders: 106

Spotify Technology S.A. (NYSE:SPOT) is one of the 11 Best Foreign Stocks to Buy According to Hedge Funds. On June 27, UBS increased its price target for Spotify Technology S.A. (NYSE:SPOT) from $680 to $895 while keeping a “Buy” rating.

The research firm highlighted several growth catalysts for the company. These include Spotify Technology S.A. (NYSE:SPOT) expanding its audiobook offerings into new markets, launching new subscription tiers, increasing prices, and growing advertising revenue.

UBS expects these factors can help Spotify Technology S.A. (NYSE:SPOT) improve monetization and maintain about 16% foreign-exchange-neutral revenue growth through 2028.

The firm also believes that the company’s increasing focus on non-music content and cost management can further improve margins. UBS projects Spotify Technology S.A.’s (NYSE:SPOT) operating margin to reach 20% in 2027. This is above the market consensus of 17.5%.

UBS analysts expect increased cash generation from these improvements, which could give Spotify Technology S.A. (NYSE:SPOT) more flexibility to return value to shareholders through different capital allocation strategies.

Spotify Technology S.A. (NYSE:SPOT) is a Swedish company that operates the largest audio streaming subscription service in the world. It offers access to millions of songs, podcasts, and audiobooks through its platform.

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