Netflix: Jefferies raises price target

(CercleFinance.com) - Jefferies on Tuesday maintained its "buy" rating on the Netflix share and raised its price target from 585 dollars to 610 dollars, based on the recent US price hike announced by the streaming service.


The price hike, coupled with an improved pipeline and hit shows such as "The Queen's Gambit" and "The Crown Season 4", can drive upside to numbers in 2021, the broker said, raising its estimates for the coming year.

"In our view, the price hike is coming at an ideal time and we continue to believe the company can sustainably increase prices by $1-2 every 2 years in developed markets," Jefferies said.

"Additionally, we think the company's content advantage over competitors is underestimated and note that their track record and volume of content gives us confidence that consumers will continue to consider Netflix a "must-subscribe" service," it added.

Jefferies is still a long-term buyer of the share and sees a bull-case scenario of over 700 dollars over the next 12 months.

Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.