Analyst Peter Supino from Wolfe Research reiterated a Buy rating on Netflix and keeping the price target at $1,390.00.
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Peter Supino’s rating is based on Netflix’s strong engagement growth and strategic positioning in the market. Despite a minor setback due to a Brazilian tax charge, Netflix’s organic sales growth in the third quarter was impressive, driven by subscriber additions, pricing strategies, and advertising revenue. This growth is expected to continue, with content amortization projected to increase significantly in the fourth quarter, which should further boost viewer engagement.
Additionally, Netflix’s competitive advantage is enhanced by price increases from competitors like HBO Max, Apple TV, and Disney+/Hulu, making Netflix a more attractive option for consumers. The company’s potential interest in acquiring Warner assets could also strengthen its entertainment offerings, although Netflix has clarified that it does not need mergers and acquisitions to achieve its goals. Overall, these factors contribute to a positive outlook for Netflix’s revenue and earnings growth, justifying the Buy rating.
Supino covers the Communication Services sector, focusing on stocks such as Netflix, Live Nation Entertainment, and Madison Square Garden Sports. According to TipRanks, Supino has an average return of 14.8% and a 67.12% success rate on recommended stocks.
In another report released today, Bernstein also maintained a Buy rating on the stock with a $1,390.00 price target.