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Netflix Extends Deal with Universal Pictures

Netflix (NFLX) has extended an arrangement with Comcast’s (CMCSA) Universal Filmed Entertainment Group (UFEG) that gives it exclusive rights to stream certain animated films in the U.S.

Netflix currently streams animated content from Universal’s Illumination studios. Under the new agreement, it will receive the rights to Universal’s DreamWorks productions as well. (See Netflix stock charts on TipRanks).

“We are thrilled to continue our partnership with UFEG to bring more films from Illumination and DreamWorks Animation to our Netflix audience…Netflix families love watching and rewatching animated films, and this deal allows us to expand our library to bring our audience more of what they want to watch,” said Colin Morawski, Netflix’s Director of Studio Licensing.

“Universal Filmed Entertainment Group produces some of the biggest animated franchises and boldest originals…This exciting agreement further demonstrates the importance of that content to our distribution partners,” commented Peter Levinsohn, Universal’s Chief Distribution Officer.

DreamWorks films will go to Netflix after four months of streaming on Comcast’s Peacock platform. The major DreamWorks animated series coming to Netflix in 2022 include Puss in Boots and Minions. As part of the deal, Netflix will license the rights to more Universal productions four years after their release.

JPMorgan analyst Doug Anmuth recently reiterated a Buy rating on Netflix stock with a price target of $600. Anmuth’s price target suggests 10.97% upside potential.

“We remain positive on the shares into earnings and 2H21 as we believe NFLX could have its strongest 6-month content slate ever…NFLX should make more progress in under-penetrated int’l markets,” noted Anmuth.

Consensus among analysts is a Moderate Buy based on 26 Buys, 7 Holds, and 3 Sells. The average Netflix price target of $606.39 implies 12.15% upside potential to current levels.

NFLX scores a 6 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.

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