Netflix (NASDAQ:NFLX) gained in trading after receiving a high price target from Pivotal Research analyst Jeffrey Wlodarczak. The analyst reiterated a Buy rating and raised the price target to $765 from $700.
As evidenced in the chart below, we can see that the price for NFLX stock gained by 2.92% after the rating and new price target was issued. The current NFLX price is sitting at $636.18.
Wlodarczak cited higher subscriber forecasts and average revenue per user (ARPU) in FY24 and beyond as reasons for the high price target. The analyst’s price target implies an upside potential of 20.8% at current levels.
Moreover, the analyst anticipates another strong quarter for Netflix, despite price hikes. Wlodarczak highlighted its impressive content slate and the ad-supported tier performing exceedingly well, along with the company’s streaming peers selling their libraries to NFLX, as major positives.
Is NFLX a Good Stock?
Analysts remain cautiously optimistic about NFLX stock, with a Moderate Buy consensus rating based on 26 Buys, 13 Holds, and one Sell. Year-to-date, NFLX has surged by more than 30%, and the average NFLX price target of $598.98 implies a downside potential of 5.6% from current levels.
