Netflix Shares Undervalued With 'Leading Global Subscriber Base': Analyst Highlights 'Significant Advertising Ramp' In 2025
Portfolio Pulse from Chris Katje
Bank of America analyst Jessica Reif Ehrlich reiterated a Buy rating on Netflix (NASDAQ:NFLX) and raised the price target from $700 to $740. Ehrlich expects Netflix to add 4.6 million net subscribers in Q2 and forecasts $9.49 billion in revenue. She highlights long-term growth drivers, including a significant advertising ramp in 2025 and 2026, and increased optimism around Netflix's ad-supported plan.
July 15, 2024 | 8:10 pm
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Bank of America analyst Jessica Reif Ehrlich reiterated a Buy rating on Netflix and raised the price target from $700 to $740. Ehrlich expects Netflix to add 4.6 million net subscribers in Q2 and forecasts $9.49 billion in revenue. She highlights long-term growth drivers, including a significant advertising ramp in 2025 and 2026, and increased optimism around Netflix's ad-supported plan.
The analyst's reiteration of a Buy rating and increase in price target to $740 is a strong positive signal for investors. The expected subscriber growth and revenue forecast for Q2, along with long-term growth drivers like the advertising ramp, are likely to boost investor confidence and positively impact the stock price in the short term.
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