Netflix stock could climb to $470, analyst says
- JPMorgan analyst raised his price target on Netflix to $470 on Wednesday.
- Doug Anmuth cited paid sharing and ad-supported tier as possible catalysts.
- Netflix stock is already up about 35% versus the start of the year 2023.
Netflix Inc (NASDAQ: NFLX) has already been an absolute delight for its shareholders this year but a JPMorgan analyst is convinced that it’s not done pleasing investors just yet.
Netflix stock could gain another 18% from here
Copy link to sectionOn Wednesday, Doug Anmuth reiterated his bullish view on the streaming giant and raised his price objective to $470 that suggests an 18% upside on its previous close.
He remains constructive on the Netflix stock since the company last month confirmed that its password-sharing crackdown and ad-supported tier were gaining traction.
We’re updating our NFLX model to capture the broader Paid Sharing opportunity following the rollout in late May to 100+ markets. We believe there’s further upside as estimates move higher.
In April, Netflix said it added a less-than-expected 1.75 million net new subscribers in its fiscal Q1 (read more).
Analyst shares his revenue estimates for Netflix
Copy link to sectionWith paid sharing, Anmuth expects Netflix Inc to monetise up to 14 million borrowers this year and another 12 million in 2024.
The JPMorgan analyst sees paid sharing revenue to hit $2.4 billion in total next year and climb further to $3.5 billion in 2025. His research note reads:
With some Paid Sharing benefits already built into our model, our revenue increases 4.0% in 2024 while operating income increases 6.0%. We now model free cash flow of $6.0 billion in 2024.
The Nasdaq-listed firm added 64 new movies and 14 new TV series to its streaming platform last week. For the year, Netflix stock is up roughly 35% at writing.
