Spotify Is Raising Prices. That’s Just What Wall Street Wanted.

Spotify announced price increases for premium subscribers in multiple markets on Monday. (Gabby Jones/Bloomberg)

Spotify Technology stock was climbing on Monday after the audio-streaming platform announced it will be raising prices for premium subscribers in certain regions.

Spotify , of Stockholm, Sweden, said in a news release on Monday that prices for premium subscribers in multiple markets across South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region will go up to €11.99 a month from €10.99 a month.

“To continue to innovate on our product offerings and features and bring users the best experience, we occasionally update our prices,” Spotify said.

Spotify didn’t immediately respond to a request for comment on whether or not North American customers should be expecting price increases, as well.

Shares of Spotify were rising 6.5% to $669.29 and were on pace for their largest percentage increase since May 2, according to Dow Jones Market Data.

Wall Street has been waiting for news that the company would be raising prices. On July 30, Deutsche Bank analyst Benjamin Black wrote in a research note that “engagement continues to be robust, and free-to-paid conversion is trending higher. This creates the opportunity for SPOT to lean into price increases that could include both music and non-music content.”

Black rates Spotify stock at Buy with a $775 price target.

On top of the company announcing price increases, Spotify stock was rising after PhillipCapital analyst Helena Wang upgraded shares of Spotify to Neutral from Reduce on Monday with a $600 price target. She wrote in a research note the upgrade was “due to the recent share-price performance.”

Spotify stock dropped 12% on July 29 after the company reported a surprise second-quarter loss, and revenue below Wall Street estimates. “Currency movements during the quarter impacted reported revenue by $104 million, relative to our guidance,” Chief Financial Officer Christian Luiga said on the earnings call.

Shares have surged 106% over the last 12 months as monthly active users and premium subscriber numbers continue to come in above analyst expectations. And analysts remain mostly optimistic on where Spotify stock can go from here. Of the 42 surveyed by FactSet, 26 are at Buy, 13 say it’s a Hold, and three are at Sell.

Write to Angela Palumbo at angela.palumbo@dowjones.com