Analyst Jason Bazinet from Citi reiterated a Hold rating on Netflix (NFLX – Research Report) and keeping the price target at $1,020.00.
Jason Bazinet has given his Hold rating due to a combination of factors related to Netflix’s long-term targets and market expectations. Initially, Netflix’s internal targets for 2030, which include ambitious goals for subscribers, revenue, and EBIT, appeared promising and even led to a temporary stock price increase. However, upon closer examination, these targets align closely with existing market estimates, and the anticipated revenue growth rate suggests a potential slowdown after 2025.
Furthermore, while Netflix’s revenue and EBIT projections are slightly above market estimates, the expected increase in costs could offset these gains, limiting the potential upside for investors. Additionally, the aspiration to join the ‘Trillion Dollar Club’ seems challenging given the required high valuation multiples, which may not be feasible if revenue growth decelerates. These factors combined lead to a cautious outlook, justifying the Hold rating.
In another report released yesterday, Loop Capital Markets also maintained a Hold rating on the stock with a $1,000.00 price target.
NFLX’s price has also changed moderately for the past six months – from $705.980 to $976.280, which is a 38.29% increase.