Netflix 'The Ultimate Beneficiary' Of Streaming Shift: Analyst Highlights Subscription Price Increase As Big Catalyst
Portfolio Pulse from Chris Katje
Netflix Inc (NASDAQ:NFLX) is expected to see a revenue and earnings growth boost in 2024 due to a planned price increase for subscribers, according to UBS analyst John Hodulik. Hodulik maintains a Buy rating on Netflix and has raised the price target from $570 to $685. The price increase, along with growth in Netflix's ad-supported tier, is anticipated to drive revenue growth to 15% in 2024, up from 7% in 2023. Netflix's strong pricing power and its share of U.S. TV viewing increasing to 7.9% in January 2024 are also highlighted as positive factors. Netflix aims to add 20 million net new subscribers in 2024, an increase from a previous estimate of 18 million.
February 28, 2024 | 8:13 pm
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Netflix's planned subscriber price increase in 2024 is expected to significantly boost revenue and earnings, with UBS analyst John Hodulik raising the price target to $685. The company's strong pricing power and increased U.S. TV viewing share support this optimistic outlook.
The positive impact on NFLX stock is based on the analyst's raised price target and the expected revenue growth from the price increase. Netflix's strong pricing power and increased market share in U.S. TV viewing further support the stock's growth potential. The company's strategic focus on profitability and subscriber growth, along with the anticipated addition of 20 million net new subscribers in 2024, underline the positive outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100