Wells Fargo raised the firm’s price target on Netflix to $726 from $650 and keeps an Overweight rating on the shares following last night’s Q1 report. The analyst thinks Netflix has significant operating leverage and margin discretion, underpinned by strong revenue growth. The firm says double digit annual average revenue growth plus margin expansion and share buybacks equals 30% annual earnings growth through 2028. Wells struggles to think of another industry with a market leader that has such high share and strong returns. It believes estimate revisions and advertising share gains are the catalysts for the stock.
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