Netflix's Surging Ad Subscribers Ignite Optimism, Analyst Bumps Up Price Target By 26%
Portfolio Pulse from Anusuya Lahiri
Oppenheimer analyst Jason Helfstein upgraded Netflix Inc's (NASDAQ:NFLX) price target from $475 to $600, a 26% increase, due to surging ad Monthly Active Users (MAUs). MAUs have grown to over 23 million, up from 15 million in November and 5 million in May. This growth suggests higher than expected 4Q net adds and potential for continued subscriber growth into 2024. Helfstein raised his 4Q and FY24 net adds estimates and increased revenue and EBITDA forecasts for FY24 and FY25. He also introduced FY26 estimates and maintained an Outperform rating for NFLX.
January 12, 2024 | 8:31 pm
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Netflix's price target has been raised from $475 to $600 by Oppenheimer analyst Jason Helfstein, following a significant increase in ad Monthly Active Users and expectations for higher future revenue and subscriber growth.
The substantial increase in Netflix's ad MAUs and the subsequent upgrade in price target by a reputable analyst are strong indicators of potential growth. This news is likely to be viewed positively by investors, potentially leading to a short-term increase in NFLX's stock price. The analyst's confidence in raising revenue and EBITDA forecasts, as well as introducing FY26 estimates, further supports the optimistic outlook for Netflix.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100