Analyst Laurent Yoon from Bernstein maintained a Buy rating on Netflix (NFLX – Research Report) and keeping the price target at $1,200.00.
Laurent Yoon’s rating is based on several key factors that indicate Netflix’s strong potential for growth. Firstly, the company’s net additions are projected to exceed 3 million in the first quarter of 2025, with the potential to surpass 4.5 million when accounting for paid sharing. This growth is largely driven by the EMEA region, which is expected to contribute significantly to the subscriber base.
Additionally, paid sharing has been a substantial growth driver, potentially adding around 30 million net subscribers over the past two years. Although the growth rate from paid sharing may slow, it still offers a significant upside to the net additions estimate for the year. Furthermore, while demand in the EMEA region has seen a decline since February, Netflix’s strategy in the UCAN region focuses on retention, with TV shows and general entertainment being effective tools. Despite a recent price hike, the impact on financials is expected to be minimal, as most revenue will be generated from the existing subscriber base.
According to TipRanks, Yoon is a 2-star analyst with an average return of 0.2% and a 40.74% success rate. Yoon covers the Communication Services sector, focusing on stocks such as Netflix, AT&T, and Comcast.
In another report released today, UBS also maintained a Buy rating on the stock with a $1,140.00 price target.