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On Tuesday, Netflix Inc. (NASDAQ:) had its price target increased by Jefferies to $700 from the previous target of $580. The company maintains a “buy” rating on the streaming giant's stock. The adjustment reflects optimism for the company's subscriber growth, with hopes that weakening competitors and a crackdown on password sharing will encourage more users to pay for the service.
Jeffries' decision comes amid expectations for a strong content lineup, including high-profile events like Tyson vs. Paul and a partnership with WWE. These factors are expected to attract more subscribers. Given these developments, Jeffries also predicts an increase in Netflix's marketing costs.
The company's analysis suggests that a combination of exclusive content and strategic initiatives can effectively convert free users into subscribers. The move is seen as a positive move that could strengthen Netflix's revenue and market position.
Jefferies raised its estimate for Netflix's marketing costs, but also said its overall forecast is in line with broader market consensus. The company's latest outlook is based on its belief that Netflix's future content and initiatives will provide a competitive edge and drive subscriber growth.
The increase in price target to $700 represents a significant price increase and signals confidence in Netflix's strategy and potential to outperform in the streaming industry. The continued Buy rating confirms the company's belief in Netflix's value proposition and future potential.
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