Analyst Benjamin Swinburne from Morgan Stanley maintained a Buy rating on Netflix (NFLX – Research Report) and increased the price target to $1,200.00 from $1,150.00.
Benjamin Swinburne has given his Buy rating due to a combination of factors including Netflix’s strong engagement metrics and innovative monetization strategies. The company is experiencing durable growth, with nearly two hours of engagement per subscriber, which is expected to support a 20-25% compound annual growth rate in adjusted earnings per share over the next four years. This growth is driven by double-digit revenue increases and consistent margin expansion.
Additionally, Netflix’s financial results have modestly exceeded expectations, particularly in earnings before interest and taxes. The predictability of Netflix’s business model, even in challenging macroeconomic conditions, reinforces the positive outlook. Swinburne also highlights the potential for Netflix to scale its advertising business and grow average revenue per member, which could lead to significant upside in free cash flow expectations by 2025.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $1,070.00 price target.