In This Article:
MoffettNathanson analysts upgraded Netflix (NFLX) to a Buy rating while the team raised its price target to $1,100 per share for the streaming giant.
Brad Smith and Madison Mills break down the latest analyst commentary around Netflix.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
this call on Netflix. Netflix getting a big upgrade here today to buy and a price target increase to $1100. This is from MoffettNathanson analyst. And in a note, analyst saying, Netflix has won the streaming wars, citing advertising revenue, a large consumer base, and lots of runway ahead, they say, to grow its margins here. Shares up handsomely on the day by about 4% right now.
Yeah, it's interesting. They talk a lot about how they have more room to run when it comes to pricing power, which is obviously what you want to see from a stock that you're going to be owning potentially, right? They say when you're looking at revenue per hour viewed, it's still looking a little bit light. So that indicating to them that they could be getting more out of each individual consumer here. They're under earning relative to their engagement. So again, seeing that as a positive catalyst for the name moving forward. They're also though talking about the fact that they have an advertising ramp. They're forecasting uh between over 6 billion in advertising revenue in 2027 and 10 billion in ad revenue by 2030. So just huge numbers there. Also continue continued growth in their subscription revenues and faster growth and advertising, which they believe will continue to drive that expansion forward, reaching 40% peak margins by 2030 with more room to grow from there. So a very grow, grow, grow story in this note from MoffettNathanson. And also just the fact that they say literally case closed when it comes to Netflix winning the streaming war, obviously huge boon for Netflix.
Yeah, Netflix has long been the North Star for a lot of other companies' direct to consumer entertainment ambitions and has even prompted activist campaigns, we know in Disney, where Netflix was directly cited as essentially saying, hey, why can't you get those types of margins? And so them being used as a lot of other uh different streaming companies' North Stars and their efforts here, it's been remarkable to watch others try, fail or try and continue to spend into those experiences. Uh just to be within the neighborhood of companies or at least streaming properties that households are willing to continue to buy into as well.
Sure.