Wedbush analyst Alicia Reese has reiterated their bullish stance on NFLX stock, giving a Buy rating on April 28.
Alicia Reese’s rating is based on several strategic factors that position Netflix favorably in the market. Despite potential risks associated with proposed tariffs on foreign-produced films, Netflix’s content strategy remains robust. The company is expected to enhance its revenue streams through the expansion of its ad-supported tier, live events, and improved advertising solutions, which are anticipated to contribute significantly to revenue over the next few years.
Moreover, Netflix’s ability to implement price increases is projected to drive revenue growth in 2025, with the ad tier further boosting revenue in 2026. As Netflix continues to expand, its contribution margin could surpass expectations, leading to substantial free cash flow. These factors collectively support the Buy rating, indicating confidence in Netflix’s capacity to navigate potential challenges and capitalize on growth opportunities.
Reese covers the Communication Services sector, focusing on stocks such as Roku, Cinemark Holdings, and Netflix. According to TipRanks, Reese has an average return of 14.5% and a 60.91% success rate on recommended stocks.
In another report released on April 28, CFRA also upgraded the stock to a Buy with a $1,289.00 price target.