Netflix Bull Gives One More Reason To Stay Invested In Streaming Giant’s Stock: Retail Sentiment Lags

UBS says the National Football League Christmas Day games generated an average of 24 million viewers for Netflix in the U.S.

Netflix, Inc. ($NFLX) shares are edging lower in premarket trading on Monday following an above-market 86%+ return this year. A UBS analyst said the company’s fundamentals would continue to remain strong in the new year, premising his optimism on sports content.

Analyst John Hodulik at UBS reiterated a ‘Buy' rating and the $1,040 price target for the stock, suggesting scope for a 15% upside potential, TheFly reported.

The National Football League Christmas Day games generated an average of 24 million viewers for Netflix in the U.S., the analyst said. He said in comparison Comcast Corp. ($CMCSA)-owned Peacock’s Wildcard playoff garnered 23 million viewers in 2023.

 Although Netflix's number was slightly shy of expectations, he added that the streaming giant is on track to take on additional sports rights over time.

The analyst noted that Netflix boasts 280 million subscribers globally and 80 million in the U.S. compared to the 70 million subscriber number for linear TV, which is seeing subscriber base erosion at an 8% pace annually.

Over time, the additional sports content should lead to further price increases and enhance the company's advertising offering, he added.

On Stocktwits, sentiment toward Netflix stock is ‘neutral’ (53/100), and message volume continues to be ‘low.’

A stock watcher on Stocktwits expressed confidence the stock will finish 2024 with a bullish uptrend.

Another saw the valuation as stretched and said they would buy puts.

That said, the sell-side has recently become more bullish on the stock. In late November, following the Tyson-Logan bout, Pivotal Research issued a Street-high price target of $1,100 for the stock. Citi hiked its price target from $725 to $920, and JPMorgan’s Doug Anmuth raised the price target for Netflix shares from $850 to $1,010 while maintaining an ‘Overweight’ rating.

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