Netflix stock target raised at Evercore on 'very strong catalyst path'

December 03, 2024 05:39 AM AEDT | By Investing

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Netflix stock target raised at Evercore on 'very strong catalyst path'

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Investing.com -- Evercore ISI analysts raised their price target for Netflix (NASDAQ:NFLX) from $775 to $950 per share in a note Monday, citing a "very strong catalyst path" and solid survey results.

The firm reiterated its Outperform rating on the stock, believing that Netflix’s position in the streaming market is stronger than ever. The new price target reflects a 32X multiple on their 2026 earnings per share (EPS) estimate of $30.

Evercore highlighted that the company is seeing significant upside potential, with a mid-single-digit percentage increase to street 2026 EPS estimates.

The firm noted that Netflix could see even more substantial gains if it returns to its historical price increase cadence.

However, they caution that the $950 price target doesn't imply dramatic near-term upside, and Netflix remains a "relatively small buy" for them at current levels.

The positive survey results, which include data from the U.S., France, and Germany, are said to underscore Netflix's competitive edge in the streaming industry.

"Netflix is in the strongest position financially, fundamentally, and competitively that we have ever seen," the firm stated. Key drivers are said to include improved churn intent and price sensitivity results across all three markets, which bode well for its subscription business.

Four major catalysts for Netflix in the near term include Christmas Day NFL games, the much-anticipated release of Squid Games II on December 26, WWE Raw in January, and upcoming price increases.

Evercore also noted that Netflix continues to expand its competitive lead in terms of content quality and is gaining traction with its live sports and stand-up comedy offerings.

With the firm’s positive outlook on Netflix’s ability to sustain its growth, it remains confident in the stock’s future prospects.

This article first appeared in Investing.com

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