Sachin Mittal, an analyst from DBS, maintained the Buy rating on Netflix (NFLX – Research Report). The associated price target was raised to $1,195.00.
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Sachin Mittal’s rating is based on Netflix’s strong financial performance and strategic initiatives that position it well for future growth. The company’s operating profit and normalized earnings have significantly surpassed market expectations, demonstrating robust financial health. Additionally, Netflix’s subscriber growth has outpaced forecasts, with a notable increase in new sign-ups driven by its ad-supported plans.
Netflix’s strategic moves, such as price adjustments and the introduction of ad-supported tiers, are expected to enhance revenue streams. The company’s ability to capitalize on the shift from traditional TV to streaming, alongside its efforts to curb password sharing, further supports its growth prospects. These factors, combined with an upward revision in revenue and earnings forecasts, justify the Buy rating with an increased target price.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $1,200.00 price target.
NFLX’s price has also changed moderately for the past six months – from $772.070 to $987.910, which is a 27.96% increase.