Wells Fargo analysts reiterated a Buy rating and a $500 per share price target on Netflix (NASDAQ:NFLX).
The analysis suggests that the market's expectations of approximately 8 million new subscribers (net adds) in the fourth quarter of 2023 could prove to be conservative “if NFLX pushes a bit more on interventions in a quarter that's typically its seasonally strongest for content drops.”
The fourth quarter is usually a period of heightened content releases.
“Street is also staying sensible with '24 margins at 22.5% (+290bps y/y), leaving room for ad tech investments. We think the key is understanding that interventions are still early, implying the length of the paid sharing net add tail,” analysts wrote in a client note.
Analysts also weighed in on the bull/bear debate on Netflix shares with the key topic being “what inning of paid sharing we're in.”
“[We] think the net add runway is long,” they added.
Yesterday, Truist analysts raised the price target on Netflix stock to $485.00 (from $339.00) while maintaining a Hold rating.
Netflix shares are up 45% year-to-date.