Netflix price target raised to $725 from $615 at Oppenheimer

Oppenheimer raised the firm’s price target on Netflix to $725 from $615 and keeps an Outperform rating on the shares. The company’s average revenue per member could still benefit from improvements to advertising monetization, subscribers paying for additional members or price increases in other regions, the analyst tells investors in a research note. Oppenheimer is forecasting Netflix’s 2024 average revenue per member to rise 4% year-over-year, following the October 2023 price increases and the gradual phase out of the Basic subscription, with no material improvement in ad monetization. The firm also thinks there is high likelihood of upside to Street net addition estimates, saying the numbers currently assume a substantial slowdown in paid sharing despite bullish engagement data. It sees a path to Netflix’s subscribers being potentially 17M higher than Street estimates over the next three years.