Citi raised the firm’s price target on Netflix (NFLX) to $920 from $725 and keeps a Neutral rating on the shares. The firm believes multiple expansion driven by incremental confidence in the company’s advertising tier has been the primary driver of Netflix’s equity returns this year. Bulls believe the ad tier can drive both drive incremental subscribers and average revenue per user, contends Citi. It believes that while Netflix’s ad-tier net adds have accelerated, most of this is driven by “spin downs.” The firm does, however, agree with the bulls and sees scope for Netflix’s ad tier to be a revenue tailwind over the next several years. All told, even with this tailwind, consensus estimates look reasonable, and the shares offer limited upside from prevailing levels, contends Citi.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See today’s best-performing stocks on TipRanks >>
Read More on NFLX:
- Netflix (NFLX) Teams Up with Puma to Launch Squid Game Season Two Apparel
- ROKU Stock Surges after Needham Says It Is a Prime Takeover Target
- QQQ ETF Update, 12/4/2024
- Domino’s Pizza, Netflix partner to bring Emergency Pizza to Squid Game
- Netflix price target raised to $940 from $760 at Canaccord
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
