William Blair analyst Ralph Schackart has maintained their bullish stance on NFLX stock, giving a Buy rating on November 28.
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Ralph Schackart’s rating is based on Netflix’s strategic acquisition of Warner Bros., which positions Netflix as a dominant force in the streaming industry. The acquisition includes valuable assets such as Warner Bros. film and television studios, HBO Max, and HBO, significantly enhancing Netflix’s content library with popular franchises like Game of Thrones, DC Comics, and Harry Potter.
Furthermore, the deal is expected to be financially beneficial for Netflix, with anticipated cost savings and increased EBITDA, making it accretive to GAAP EPS. Despite potential regulatory challenges, the management is optimistic about gaining approval, highlighting the deal’s pro-consumer and pro-innovation benefits. This acquisition not only expands Netflix’s subscriber base but also strengthens its brand by integrating HBO, making it a compelling investment opportunity.
In another report released on November 28, Rosenblatt Securities also maintained a Buy rating on the stock with a $152.00 price target.
Based on the recent corporate insider activity of 172 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NFLX in relation to earlier this year.