11/8/2023 0 Comments Netflix stock price target 2017The Evercore ISI analyst’s bullish conclusion: “Netflix isn’t going into these GCI catalysts from a position of dramatic weakness, which is what the market had feared. Summarizing management comments that the recently launched cheaper ad tier is incremental on both subscribers and average revenue per user (ARPU), Mahaney wrote, “we see the potential for a global weighted average of $9-plus of ad revenue per Basic With Ads sub, which could make Basic With Ads strongly ARPU-accretive.” But fourth-quarter earnings per share results did provide evidence that Netflix’s core business has shook off its COVID comparisons and price increase backlash.”Īs key drivers of the positive subscriber growth surprise, Mahaney highlighted “a robust content slate ( Wednesday, Glass Onion, etc …), a return to more normal churn levels post the early ’22 price increase and, plausibly, the beginning of a solid contribution from password-sharing management in Latin America and the rollout of Basic With Ads.” And he emphasized: “What is so bullish about Netflix here is that the revenue and profit growth impact of these last two factors is just beginning to roll through Netflix fundamentals and should drive revenue growth acceleration and margin expansion throughout ’23.” He noted that his stock upgrade in mid-September had come “on the belief that Netflix’s ad-supported offering and password-sharing initiatives constituted major growth curve initiatives (GCI) - catalysts that could drive a material reacceleration in revenue and earnings per share growth.” While fourth-quarter results “provided only modest evidence of this,” the export predicted that “the best is come. The financial impact of the ad tier will be limited until mid-year, with “contributions to expand over time,” Morris concluded.Įvercore ISI analyst Mark Mahaney, in a report titled “Make It a Netflix Year,” also boosted his stock price target by $60 to $400 and reiterated his “outperform” rating. “Netflix indicated that ad-supported unit economics were in line or better than ad-free plan.” And he emphasized that management noted limited switching from other tiers so far. “Early ad-supported tier adoption bolstered member trend strength, but was not the sole driver, with password sharing initiatives to roll out broadly in late first quarter fueling sequential revenue acceleration,” Morris noted. Guggenheim analyst Michael Morris, who has a “buy” rating on Netflix, boosted his stock price target by $305 to $375 in a report titled “Show Us the Money! Member Trends, Cash Flow Outlook Delight Investors.” In particular, we are bullish on the long-term potential of advertising, which management stated could eventually reach 10 percent of total revenues.” In the bullish note, Reif Ehrlich wrote, “we believe password sharing along with the continued rollout of its AVOD service will drive an acceleration in growth throughout ‘23 in revs/subs and beyond. 19, has a “buy” rating on Netflix with a price target raised from $370 to $410. The streaming giant, which ended 2022 with 230.75 million global subscribers, had after Thursday’s market close called 2022 “a tough year, with a bumpy start but a brighter finish,” adding: “We believe we have a clear path to reaccelerate our revenue growth, continuing to improve all aspects of Netflix, launching paid sharing and building our ads offering.” Many on Wall Street also see upside for the company’s shares after a sharp drop in 2022, arguing that the streamer is getting its groove back in terms of finding hit content, such as Addams Family spinoff Wednesday, and in terms of overall performance.Īdam Sandler's Upcoming Film 'Leo' Joins 'One Piece' as First-Time Balloons for Macy's Paradeīank of America’s Jessica Reif Ehrlich, who moderated the streaming giant’s earnings call Jan. Amid renewed bullishness, Netflix’s stock was up 6.8 percent in early Friday trading, at $337.16. Netflix was the talk of Wall Street again on Friday, as several analysts raised their stock price targets after dissecting the streaming giant’s better-than-expected addition of 7.66 million subscribers in the fourth quarter, early momentum of its advertising-supported subscription tier, plans for a broader password-sharing crackdown and Reed Hastings’ decision to drop his co-CEO title to focus on the role of executive chairman.
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