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Balanced Outlook for Netflix: Hold Rating Amid Revenue Growth Focus and Equity Return Uncertainty

Balanced Outlook for Netflix: Hold Rating Amid Revenue Growth Focus and Equity Return Uncertainty

Analyst Jason Bazinet of Citi maintained a Hold rating on Netflix (NFLXResearch Report), boosting the price target to $1,020.00.

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Jason Bazinet has given his Hold rating due to a combination of factors that suggest a balanced outlook for Netflix’s future performance. Although Netflix’s stock experienced substantial growth in 2024, rising by approximately 90%, this was largely driven by positive estimate revisions, valuation adjustments, and multiple expansions. However, as Netflix transitions away from disclosing subscriber numbers or ARM, revenue growth is expected to become the primary focus for investors going forward.
Bazinet analyzed the consensus revenue estimates and concluded that they are reasonable, although the paths to achieving these estimates might differ, with potentially fewer subscribers but higher revenue per subscriber. Despite the projected revenue growth being attainable, Bazinet does not foresee significant equity returns from 2025 to 2027 unless costs decrease unexpectedly. Therefore, he maintains a Neutral rating, reflecting a cautious yet optimistic stance on the company’s financial outlook.

According to TipRanks, Bazinet is a 5-star analyst with an average return of 13.8% and a 62.73% success rate. Bazinet covers the Communication Services sector, focusing on stocks such as Netflix, Take-Two, and Spotify Technology SA.

In another report released on January 23, Arete Research also upgraded the stock to a Hold with a $833.00 price target.

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