Netflix (NASDAQ: NFLX) slipped in morning trading on Wednesday even as the streaming service was upgraded by top-rated UBS analyst John Hodulik to a Buy from a Hold even as the company delivered a mixed bag of earnings in Q1. Hodulik also raised the price target on NFLX to $390 from $350, implying an upside potential of 21.7% at current levels.
The analyst stated, “We see Netflix as the main beneficiary of easing competition in DTC [direct-to-consumer] as peers focus on profits.” Elaborating further, the analyst commented that as Netflix’s competitors like Disney (DIS) and Paramount Global (PARA) raise the prices of their streaming services, it could also help Netflix lift its own prices.
Hodulik expects that the company’s revenue growth is likely to hit 6% in the second quarter of this year, excluding currency fluctuations, and could grow to 10% in the second half of this year. In FY24, the analyst projected Netflix’s revenues to rise by 12% or more.
Other analysts, besides Hodulik, are cautiously optimistic about NFLX stock with a Moderate Buy consensus rating based on 17 Buys, 15 Holds, and two Sells.
