On Wednesday, MoffettNathanson updated its outlook on Netflix (NASDAQ:NFLX) shares, raising the price target to $850 from the previous $670. This adjustment comes despite the firm maintaining a Neutral rating on the streaming giant's stock, which has delivered an impressive 79% return over the past year. According to InvestingPro data, analyst price targets for Netflix currently range from $597 to $1,250, reflecting diverse views on the company's $371.75B market valuation.
The adjustment in Netflix's price target reflects MoffettNathanson's anticipation of accelerated growth in revenue and EBIT margins for the years 2025 and beyond. The firm's analysts project these enhancements will result in significantly positive revisions to their long-term forecasts, which extend through 2030. This optimism aligns with Netflix's current revenue growth of 14.8% and its "GREAT" financial health rating from InvestingPro, which offers 16 additional key insights about the company's performance and valuation.
MoffettNathanson based the new price target on a premium 18x EV/EBITDA multiple applied to their estimated 2030 GAAP EBITDA, with a projected margin of 39%. This valuation was then discounted back three years to arrive at the current target.
The firm also indicated that they intend to re-evaluate their assumptions after a thorough review of Netflix's upcoming 10-K filing. The 10-K is an annual report filed by publicly traded companies, detailing their financial performance and is closely scrutinized by investors and analysts for insights into a company's operations.
Netflix, listed on NASDAQ under the ticker NFLX, has been a subject of intense scrutiny by investors as the streaming landscape becomes increasingly competitive. Price target adjustments by major research firms such as MoffettNathanson are closely watched indicators of the company's financial health and market position.
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