Wedbush has increased its price target for Netflix (NFLX, Financial) from $1,150 to $1,200, maintaining an "Outperform" rating on the stock. This optimistic outlook is driven by expectations of substantial growth in Netflix's advertising revenue over the coming years.
The firm anticipates that Netflix, known for its innovative content and global reach, will enhance its advertising offerings and target more effectively. Furthermore, the company plans to diversify its content by incorporating live events, which is expected to attract more advertisers.
While a surge in subscriber numbers is projected to be the key revenue driver in 2024, Wedbush forecasts that future revenue growth will stem from price hikes in 2025 and increased contributions from the ad-supported tier in 2026.
Netflix's strategic expansion and revenue-generating initiatives are likely to significantly bolster its contribution margin, potentially exceeding Wedbush's expectations. This, in turn, could lead to a notable increase in free cash flow, reinforcing the firm's positive assessment of Netflix's financial trajectory.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 44 analysts, the average target price for Netflix Inc (NFLX, Financial) is $1,094.99 with a high estimate of $1,494.00 and a low estimate of $644.50. The average target implies an upside of 12.53% from the current price of $973.03. More detailed estimate data can be found on the Netflix Inc (NFLX) Forecast page.
Based on the consensus recommendation from 50 brokerage firms, Netflix Inc's (NFLX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Netflix Inc (NFLX, Financial) in one year is $655.44, suggesting a downside of 32.64% from the current price of $973.03. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Netflix Inc (NFLX) Summary page.
