Netflix, Inc. (NASDAQ:NFLX) shares rose moderately in premarket trading on Wednesday after an analyst raised the price target for the stock. The streaming giant is set to release its first-quarter results on April 18.
The Netflix Analyst: KeyBanc Capital Markets analyst Justin Patterson maintained an Overweight rating and raised the price target for the stock by about 22% from $580 to $705. The updated price target suggests a scope for roughly 14% upside potential.
The Netflix Thesis: Patterson listed two reasons for his increased optimism on Netflix and these include:
- Improving content quality
- Improving engagement, driving monetization ramp in both price increases and ad revenue.
Citing data, the analyst said Netflix viewership was strong. Quarter-to-date content slate appears solid with six series, including “Avatar,” “Berlin,” “Fool Me Once,” “The Gentlemen,” “Griselda,” and “Love Is ...