Netflix (NFLX) and Amblin Partners, the company headed by Steven Spielberg, have forged a strategic partnership to produce multiple new films per year for the streaming platform.
The deal comes at a time of stiff competition in the streaming business and will enrich Netflix’s streaming library with promising entertainment options.
Netflix Head of Global Film Scott Stuber commented, “Amblin and Steven Spielberg are synonymous with incredible entertainment. Their passion and artistry combine to make films that both captivate and challenge audiences.”
Spielberg reiterated that Netflix offers a new avenue for Amblin’s movies and the partnership will help reach audiences in new ways. This won’t be the first time that Netflix and Amblin Partners have worked together. They have previously collaborated on The Trial of the Chicago 7, which was nominated for the Oscars. The two companies are also partnering on Maestro, which is currently in pre-production. (See Netflix stock chart on TipRanks)
KeyBanc analyst Justin Patterson has maintained a Buy rating on the stock with a price target of $650, implying 30.8% upside potential to current levels. According to the analyst, immediate data suggests Netflix is tracking below its Q2 net add estimates of 0.8 million to 1 million. The weakness could be attributed to a lighter content slate. However, Patterson expects this to change with the return of Money Heist and Witcher, which are expected to normalize net add trends.
Consensus among analysts is a Moderate Buy based on 26 Buys, 6 Holds, and 3 Sells. The average Netflix analyst price target of $612.5 implies 23.2% upside potential to current levels.
NFLX scores 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.