Loop Capital has upgraded Netflix (NFLX) stock, declaring that the company has “won the streaming wars.”
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
With a near-record slice of U.S. television consumption and a number of high-profile projects in the works, NFLX stock is worth owning, says Loop Capital in a note to clients. The Wall Street firm upgraded Netflix’s stock to Buy from Hold and raised its price target on the shares to $1,350 from $1,150. The new price target is 10% higher than where NFLX stock currently trades.
In upgrading the streaming company, Alan Gould, a top five-star rated analyst, wrote that Netflix “has won the streaming wars.” He notes that even as the streaming environment grows more crowded, Netflix has managed to generate strong user engagement. Loop Capital estimates engagement has increased 17% in the current third quarter from a year ago due to shows such as “Squid Game.”
Popular Content
Gould also highlights that Netflix is nearing a record for its share of U.S. television consumption at more than 8.5%. And worries about threats from streaming competitors may be overblown. “We believe the Street is overly concerned with competition,” he wrote.
With Netflix spending nearly $20 billion a year on content, more than any other streaming platform, the company is well-positioned to maintain its dominance, says Loop Capital. The upcoming slate of content from Netflix includes a final season of “Stranger Things,” a new “Knives Out” movie, and two NFL football games to be broadcast live on Christmas Day.
Is NFLX Stock a Buy?
The stock of Netflix has a consensus Moderate Buy rating among 37 Wall Street analysts. That rating is based on 25 Buy, 11 Hold, and one Sell recommendations issued in the last three months. The average NFLX price target of $1,393.77 implies 14.01% upside from current levels.
