Loop Capital upgrades Netflix to Buy on improving fundamentals

Loop Capital upgraded Netflix to Buy from Hold with a price target of $500, up from $425. The shares have corrected 15% from its recent gains, but more importantly, Netflix’s fundamentals continue to improve, the analyst tells investors in a research note. The firm says the company’s competition is simultaneously raising prices and reducing content spend, which should further boost Netflix’s competitive position. Netflix is the best positioned for the writers and actors strike based on its larger pipeline of unreleased content and global production capabilities, Loop contends. It believes the strike will accelerate the decline of the traditional TV business, benefiting streaming. The firm also thinks Netflix’s advertising will become a “major contributor” over time