In a report released today, Doug Anmuth from J.P. Morgan maintained a Hold rating on Netflix (NFLX – Research Report), with a price target of $1,220.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Doug Anmuth has given his Hold rating due to a combination of factors influencing Netflix’s current market position. While he maintains a positive long-term outlook on Netflix’s leadership in the streaming industry, he notes that the recent significant appreciation in Netflix’s stock price has balanced the risk and reward profile. The stock is trading at high multiples, specifically 39 times the estimated 2026 GAAP EPS and 44 times the estimated 2026 free cash flow, which suggests that much of the anticipated growth may already be priced in.
Additionally, Anmuth points out that Netflix’s shares have been defensive, but with potential easing of macroeconomic concerns, there might be a shift in investor focus towards other internet stocks that have been under pressure. Furthermore, the summer months are typically slower for Netflix, and the near-term catalysts appear limited despite strong content offerings. These factors contribute to the decision to downgrade the stock to a Hold rating, reflecting a more cautious stance given the current valuation and market dynamics.
According to TipRanks, Anmuth is a top 100 analyst with an average return of 20.4% and a 62.27% success rate. Anmuth covers the Communication Services sector, focusing on stocks such as Netflix, Alphabet Class C, and Alphabet Class A.
In another report released on May 16, Loop Capital Markets also maintained a Hold rating on the stock with a $1,000.00 price target.