William Blair analyst Ralph Schackart has maintained their bullish stance on NFLX stock, giving a Buy rating today.
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Ralph Schackart has given his Buy rating due to a combination of factors influencing Netflix’s current and future performance. One key reason is the successful implementation of price hikes, which have been well-received in major markets despite economic uncertainties, indicating strong customer retention. Additionally, Netflix’s advertising business is expanding, with the company aiming to achieve significant scale in ad-supported countries by 2025. This growth in advertising is expected to enhance revenue streams and solidify Netflix’s market position.
Another factor contributing to the Buy rating is Netflix’s substantial and monetizable audience, which exceeds 700 million people, with a significant portion outside the United States. This global reach, supported by Netflix’s strategy of producing original content tailored for diverse international markets, is expected to sustain its competitive advantage. Furthermore, the company’s recent quarterly results showed a notable revenue increase, driven by both subscriber growth and price adjustments, alongside a strong operating margin, reinforcing the positive outlook for Netflix’s financial health.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $1,070.00 price target.