In a report released on May 15, Eric Sheridan from Goldman Sachs maintained a Hold rating on Netflix (NFLX – Research Report), with a price target of $1,000.00.
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Eric Sheridan’s rating is based on several factors that reflect both opportunities and challenges for Netflix. The company has made significant strides in expanding its ad-supported user base, which has reached 94 million globally, showcasing strong engagement trends. This growth indicates potential for increased revenue through advertising, especially with the launch of the Netflix Ad Suite, which aims to enhance advertiser performance through improved data targeting and measurement capabilities.
However, despite these positive developments, there are concerns that may have influenced the Hold rating. The competitive landscape in the streaming industry remains intense, and Netflix faces challenges in maintaining its growth momentum. Additionally, while the ad-supported model presents new revenue opportunities, it also introduces complexities that Netflix must navigate effectively. These mixed factors contribute to a cautious outlook, justifying the Hold recommendation.
According to TipRanks, Sheridan is a 5-star analyst with an average return of 10.0% and a 54.45% success rate. Sheridan covers the Communication Services sector, focusing on stocks such as Netflix, Meta Platforms, 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.