Netflix, Inc. (NASDAQ:NFLX) shares surged following the streaming giant’s robust third-quarter results, prompting analyst Justin Patterson at KeyBanc Capital Markets to jump on the bullish bandwagon after staying on the sidelines since January 2022.
Ratings Upgrade
Patterson upgraded Netflix shares from “Sector Weight” and set a $510 price target for the stock, implying a substantial 47% upside potential from current levels. This revised price target is determined by a valuation multiple of 25 times the estimated earnings for 2025.
The Netflix Thesis
“Netflix is entering 2024 as a cleaner story,” noted Patterson in a report. He based his argument on the premise that paid sharing has altered the company’s capacity to reach an additional 250 million subscribers, while ongoing buybacks are expected to sustain a growth profile of ...