Netflix price target raised to $1,390 from $1,070 at KeyBanc

KeyBanc analyst Justin Patterson raised the firm’s price target on Netflix (NFLX) to $1,390 from $1,070 and keeps an Overweight rating on the shares as the firm believes the combination of live events, price increases, and an ad ramp support low double digit revenue growth over the medium term and nearly $40 in EPS by 2027. Near term, KeyBanc is mindful that Netflix’s year-to-date outperformance could create some volatility as investors wonder “What’s next?” post Wednesday and Stranger Things. In its view, Netflix’s track record of finding surprise content hits and new focus on live events should provide consistent engagement to support future monetization.