UBS analyst John Hodulik maintains $Netflix (NFLX.US)$ with a buy rating, and maintains the target price at $750.
According to TipRanks data, the analyst has a success rate of 65.0% and a total average return of 8.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Netflix (NFLX.US)$'s main analysts recently are as follows:
It's suggested that the evolving landscape of Hollywood is advantageous for Netflix, with a reduction in content competition and a renewed willingness among media company studios to enter licensing agreements. The introduction of an advertising tier is viewed as a means for Netflix to further expand its total addressable market rather than just enhancing its average revenue per member. The forecast for subscriber growth remains positive, with conservative estimates of 4 to 4.5 million new additions in Q3 and a stronger projection of 8 to 9 million in Q4.
Netflix is described as an attractive growth narrative with significant potential for revenue, earnings, and free cash flow expansion in the years ahead. Nevertheless, the current stock valuation may not offer much room for an increase in multiples and is anticipated to decline as the company's growth decelerates into 2025, amid a reduction in the temporary increase in net additions from paid sharing. Analysts anticipate that Netflix sustained its subscriber growth due to paid sharing in the third quarter, though the benefits from this strategy are expected to diminish. Consequently, the forecast for Q3 net additions was raised.
Following a 13% rise in Netflix shares since the second quarter results, driven by positive third-party subscriber data, the company is anticipated to deliver robust results and forward-looking projections. Significant to its performance will be the potential announcement of a pricing escalation. Previously, Netflix instituted a price hike for its Premium tier in several countries. It's now projected that there will be an increased price for the Premium package in additional regions, as well as an anticipated 8%-15% rise for the Standard subscription. It's worth noting that there hasn't been a price increase for the Standard plan since January 2022, when it was positioned at a 53% premium compared to its competitors, compared to the current 4%. Enhanced viewership in the third quarter, coupled with a promising content lineup for the fourth quarter, including NFL coverage, is expected to further mitigate the risk of subscriber turnover.
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