Wedbush Securities have flagged Netflix (NFLX) as a stock to buy for its sports streaming exposure. Over the weekend, Netflix aired the highly anticipated fight between boxers Mike Tyson and Jake Paul, which ESPN describes as the most heavily bet-on fight in years. This event may mark a turning point for NFLX stock, as it positions the company as a leader not just in film and television streaming but in sports. One Wedbush analyst believes the stock has high growth potential if it continues to focus on live sports.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
What’s Happening with Netflix Stock?
Trading is off to a good start this week for Netflix stock. As of this writing, shares are up 3% and look poised to close out the day in the green. Shares dipped last week but, since then, have done an excellent job rebounding, mostly thanks to the momentum from the fight. Over the past quarter, shares have performed well overall, shaking off sometimes unfavorable market conditions to rise 22%.
Alicia Reese of Wedbush has made it clear that she sees this as a pivotal moment for the company as it shows that Netflix can offer investors exposure to a new market. In a recent note to investors, the analyst stated that the boxing match “underscored its massive opportunity in live sports.” The analyst increased her NFLX stock price target from $800 to $950, implying a 13% upside potential.
Reese added that Wedbush has high hopes for Netflix streaming events that can help increase ad revenue, which she sees as the company’s likely “primary revenue growth driver” by 2026. This could be a natural evolution for the streaming giant as it maneuvers to stay ahead of competitors and continue delivering entertainment for a varied audience amid rising subscription costs.
Wall Street Remains Fairly Bullish on NFLX Stock
Overall, Wall Street remains mostly bullish on Netflix. Analysts have a Moderate Buy consensus rating on NFLX stock based on 24 Buys, 10 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Even after a 78% rally in its share price over the past year, the average NFLX price target of $792 per share still implies 6% downside potential.
