TD Cowen analyst John Blackledge maintained a Buy rating on Netflix today and set a price target of $1,425.00.
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John Blackledge has given his Buy rating due to a combination of factors, including Netflix’s strong financial performance and promising future projections. The company’s third-quarter revenue was consistent with expectations, showing a 17% year-over-year increase, driven by growth in membership, pricing, and advertising revenue. Operating income exceeded estimates by 6% when excluding a significant retroactive tax charge from Brazil, indicating a robust operating margin.
Furthermore, Netflix’s guidance for the fourth quarter suggests a revenue slightly above consensus, and the management anticipates a substantial increase in advertising revenue by more than 100% year-over-year in 2025. The company’s content slate, featuring popular series like ‘Emily in Paris’ and ‘Stranger Things,’ is expected to boost engagement. Additionally, Netflix has raised its free cash flow guidance for 2025, reflecting confidence in its financial trajectory. These factors collectively support the Buy rating, as they indicate a strong growth potential and financial stability for Netflix.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $1,500.00 price target.