Shares of Netflix (NASDAQ:NFLX) were little changed in today’s trading despite analyst praise. Evercore ISI highlighted the video streamer’s potential for further growth, emphasizing its strategic mix of ad-supported and ad-free subscription options. According to analyst Mark Mahaney, this hybrid model not only attracts new subscribers but also plays a crucial role in retaining current users in the U.S. As a result, Mahaney upgraded his price target to $640 while maintaining a Buy rating.
Furthermore, surveys conducted in the U.S. and Japan reveal differing sentiments towards Netflix, with the Japanese market showing particular promise for the streaming service. Notably, Netflix’s initiative to charge additional fees for account sharing outside of a subscriber’s household appears to have potential in markets outside the U.S., including Japan.
This approach could significantly boost subscriber numbers in the coming quarters as the company begins to enforce paid sharing, especially among users who have been accessing Netflix through borrowed accounts on mobile devices.
What Is Netflix’s Stock Prediction?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 27 Buys, 13 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 106% rally in its share price over the past year, the average NFLX price target of $584.84 per share implies 4% downside risk.
