Netflix Draws Price-Target Increases from Analysts

By Dan Weil

Netflix  (NFLX Get Netflix, Inc. (NFLX) Report has garnered price target increases from several analysts, who are impressed with the streaming company’s fundamentals as it heads towards next Tuesday’s earnings report.

The stock closed Tuesday at $624.94, down 0.33%, and has climbed 20% so far this year.

Jefferies analyst Andrew Uerkwitz raised his target price to $737 from $620 and kept his buy rating. Netflix’s recent purchase of the game developer Night School is a positive, he said, according to Barron’s.

The stock may earn a higher multiple as the possibilities for Netflix play out in gaming, and global content like "Squid Game" thrives.

Baird analyst William Power boosted his target to $680 from $650, maintaining his outperform rating. The wild success of “Squid Game” will draw fresh subscribers and shows the company’s prowess when it comes to generating quality content, he wrote, according to Barron’s.

“If ‘Squid Game’ is any indicator, content is still king,” Power said. “We had expected a stronger second-half content slate to benefit subscriber growth, which we believe is playing out.”

Truist analyst Matthew Thornton lifted his target to $690 from $600 and sustained his buy rating. Investors have gone from worrying about competition for Netflix to enthusiasm about its content and its gaming effort, he wrote, according to Barron’s.

Morningstar analyst Neil Macker puts fair value at only $250 for the stock. He likes the company, assigning it a narrow moat, but believes it has risen too far.

He assumes Netflix's domestic paid streaming subscriber count will reach 78 million in 2025, and its international count will hit 300 million.

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