Netflix

By Emily Dattilo Netflix has a new price target ceiling on Wall Street, thanks to one analyst who crowned the company the winner of the streaming wars. Pivotal Research Group analyst Jeffrey Wlodarczak raised his price target on Netflix to $765 from $700 a share and maintained his Buy rating in a research report Friday, citing his higher forecasts for subscribers and average revenue per user (ARPU) for 2024 and beyond. The average price target for Wall Street analysts, according to FactSet, is $615.67. Wlodarczak is expecting another solid quarter for Netflix even as prices increase. He highlighted multiple positives for the company including an impressive content slate, benefits from the ad-supported tier, and streaming peers selling their library to the company. “In the end, our positive investment view remains unchanged, Netflix has won the streaming wars and their continued strong subscriber/ARPU and free cash flow generation should drive the […]

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We have completed our semi-annual rebalance of the Warren Buffet Intrinsic Value Portfolio (WBIV). The number of constituents has been reduced by 5 to 64. The rules-based portfolio is comprised of 47 companies that were already in the portfolio before the rebalance and 17 new companies; 22 companies were dropped from the portfolio. The most notable additions to the portfolio are: Netflix (NFLX), Gilead Sciences (GILD), and Synopsys (SNPS). The most notable deletions from the portfolio are: Eli Lilly and Company (LLY), Broadcom (AVGO), Abbvie (ABBV), Applied Materials (AMAT), and Bristol-Myers Squibb (BMY). The average market cap of the WBIV is $254 million and the dividend yield is 1.3%. The most notable increases in sector weightings (vs. the September 2023 rebalance) are Information Technology, up 3.5% to

Citigroup analyst Jason Bazinet maintains Netflix (NASDAQ:NFLX) with a Neutral and raises the price target from $555 to $660.

Netflix’s sports ambitions continue to grow. The streaming giant announces plans to premiere a docu-series on select receivers in the National Football League later this year. The docu-series will likely be in a similar mold to the one made on select NFL quarterbacks as it comes from the same creators. Netflix has focused more on sports programming after success with some of its shows such as “Quarterback”; the company in January announced a $5 billion, multiyear deal with WWE wrestling. One of the next ventures is a livestreamed boxing match featuring former heavyweight champ Mike Tyson and YouTube star-turned-boxer Jake Paul.

Loop Capital analyst Alan Gould maintains Netflix (NASDAQ:NFLX) with a Buy and raises the price target from $585 to $700.

Evercore ISI Group analyst Mark Mahaney maintains Netflix with a Outperform and raises the price target from $600 to $640.

Jefferies analyst Andrew Uerkwitz maintains Netflix (NASDAQ:NFLX) with a Buy and raises the price target from $580 to $700.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our target by $40 to $650 using a forward TEV/EBITDA of 29.7x, below the three-year historic average at 32.0x. We keep our EPS estimate at $17.05 in 2024 and $20.60 in 2025, both near consensus. On valuation, we are comfortable with a wider risk premium given NFLX is widening its lead over its competitors, in our opinion, and has new revenue streams (advertising, ad-pay plans, and paid share members) to spur growth. We believe NFLX has a best-in-class technology platform, programming, and global distribution. The company never stops innovating and management is disciplined with a $17B programming and content annual budget. NFLX has a major opportunity as TV viewers shift to streaming from linear networks, while most of its direct competitors have to transition from

Netflix sees its strategy for game licensing following a familiar playbook. CFO Spencer Neumann says at a Morgan Stanley conference that the company’s relatively new gaming business is just starting to add in-house content. Like with TV and film, Neumann says he expects the company to over time build a higher mix of non-licensed content. He says licensed games are likely going to play a major role in the company’s games business for a long time, “probably forever.” “The mix will change over time,” Neumann says. The company sees games driving further retention on the platform in the future.

Netflix’s price per hour of consumption is at the low end of its peer group, which is expected to lead to price increases this year, UBS analyst John Hodulik says in a research note. “While we expect net adds to slow, we believe Netflix still has significant runway as it continues to convert users to paid subs and attracts new cohorts,” Hodulik says. These conversions, along with price increases and a ramp-up in revenue from its ad-supported subscriptions is expected to drive 15% revenue growth in 2024, the analyst says. Hodulik raises the price target to $685 from $570. Netflix is up 2.4% to $601.85.

The run-up of Netflix’s share price in recent months has Seaport Research Partners analyst David Joyce downgrading the stock to neutral from buy. In a research note, the analyst questions where else the stock price has to go after rapidly increasing to his $576 price target. “Whether Netflix is priced for perfection or not, we wonder who is the incremental buyer, and what are they playing for?” Joyce says. The big opportunity presented by Netflix’s new ad-supported subscription tier seems already baked into the stock price and has lifted valuation parameters far above normal ranges, the analyst says. Shares slip 1.9% to $564.81.