Netflix: UBS still a buyer, raises TP

(CercleFinance.com) - UBS announced on Thursday that it had raised its target price for Netflix shares from $825 to $1,040 (cp: $902, +1.
4%), expecting the streaming platform's strong operational performance to continue next year.

The analyst - who maintains his 'buy' recommendation on the stock - says he expects the Christmas line-up, which includes the broadcast of American soccer matches and season 2 of the 'Squid Games' series, to kick-start the American group's growth perfectly as it heads into 2025.

With the arrival of new seasons of 'Stranger Things' and 'Wednesday', as well as the addition of content from the WWE wrestling franchise, the intermediary believes that Netflix is still in a position to maintain sales growth of over 10% and an increase of at least 20% in operating profit.

UBS thus forecasts average annual sales growth of 12.3% over three years and a 24% increase in operating profit by 2027, compared with forecasts of 11.8% and 21% respectively to date.


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