On Wednesday, Jefferies maintained a Buy rating on Netflix shares (NASDAQ:NFLX), with a steady price target of $655.00. The firm expressed optimism about Netflix's recent deal with the NFL, anticipating it will bolster the streaming giant's nascent advertising business. The agreement, which covers two Christmas games in 2024 and two additional games in each of the subsequent years, is seen as favorably priced at less than $150 million per game.
The analyst from Jefferies highlighted the significant viewership numbers from the last Christmas game, which attracted 29 million viewers, as a strong indicator of the deal's potential value. This viewership is expected to provide a solid foundation for Netflix's advertising business, which is still in its early stages.
The deal's terms are considered attractive, especially in light of the viewership figures. With less than $150 million spent per game, the investment seems poised to deliver a good return in terms of audience reach. The analyst believes that the NFL deal will enhance Netflix's value proposition in the advertising market.
With Netflix scheduled to present at the Upfronts tomorrow, the anticipation is that advertiser interest will surge. The Upfronts are a critical event where television networks preview their fall line-ups to advertisers. The analyst expects that Netflix's involvement, particularly with the NFL deal in hand, will significantly increase advertiser excitement beyond previous expectations.
The steady price target of $655 by Jefferies reflects confidence in Netflix's strategy and the expected positive impact of the NFL deal on the company's advertising business. Netflix's share performance and the broader market's reaction to these developments will be closely watched by investors.
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