Brian Pitz, an analyst from BMO Capital, maintained the Buy rating on Netflix. The associated price target is $143.00.
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Brian Pitz has given his Buy rating due to a combination of factors surrounding Netflix’s strategic acquisition of Warner Bros. This $83 billion deal is poised to solidify Netflix’s dominance in digital entertainment by adding a vast array of valuable intellectual properties, such as Harry Potter and Game of Thrones, to its portfolio. The acquisition also includes Warner Bros. Games, which is expected to significantly boost Netflix’s gaming ambitions and allow it to tap into the lucrative global gaming market.
Despite potential short-term challenges related to operational complexities and regulatory scrutiny, the deal is anticipated to generate substantial cost synergies and become accretive to earnings per share within two years. Furthermore, Netflix plans to continue increasing its investment in original content, which is expected to drive long-term growth. These strategic moves, coupled with the potential for operating margin expansion, underpin Pitz’s optimistic outlook on Netflix’s future performance.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $142.00 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.