Netflix Analyst Projects 10% Stock Upside On Healthy Growth Trends, But Retail Hesitates

Netflix, Inc. ($NFLX) shares were moderately higher in Wednesday’s pre-market session after positive analyst action, but retail sentiment remained bearish.

JPMorgan analyst Doug Anmuth raised the price target for Netflix shares from $850 to $1,010, while maintaining an ‘Overweight’ rating, TheFly reported.

Citing the streaming giant’s strong content, healthy organic growth, and ramping ad-tier contribution, the analyst raised the fourth quarter and 2025 net subscriber adds estimates.

Sensor Tower data showed significant improvement in global download and daily active user trends through the fourth quarter, he added.

The analyst expects the company’s 2025 revenue to be supported by healthy organic and secular growth, ramping advertising contribution and price increases.

This is the seventh price target revision for the stock in the past month, as the sell-side becomes increasingly bullish. Last week, Citigroup raised its price target from $725 to $920, citing incremental confidence in the company’s advertising tier that has been the primary drive of the equity returns this year.

The Street-high price target for the company is $1,100 issued by Pivotal Research in late November. Following the Mike Tyson-Logan Paul flight that was streamed by 65 million households, analysts at the firm raised the medium- and long-term subscriber and average revenue per user forecasts for the company.

The average analysts’ price target for Netflix is $830.14, according to TipRanks, which suggests scope for over 9% downside from current levels.

The fourth-quarter guidance issued in mid-October calls for 15% revenue growth and a sequential increase in paid net additions due to normal seasonality and a strong content slate. 

Netflix’s third-quarter global paid net additions came in at 5.07 million and global streaming paid memberships rose 14.4% year-over-year to 282.72 million. 

In premarket trading, as of 8:03 a.m. ET, Netflix shares rose 0.71% to $919.81. The stock has gained a whopping 88% this year. 

 NFLX sentiment and message volume December 11, 2024, premarket as of 8:03 am ET | Source: Stocktwits

Sentiment toward Netflix stock was stuck in ‘bearish’ territory (44/100), with message volume dropping off to ‘low.’

A Stocktwits user said they do not see any reason to sell the stock, given the company’s global dominance and its leading streaming business.

But another expressed uneasiness over the stretched valuation.

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