Netflix price target raised to $1,040 from $825 at UBS

UBS raised the firm’s price target on Netflix (NFLX) to $1,040 from $825 and keeps a Buy rating on the shares. The firm has increased conviction in Netflix’s ability to sustain 10%-plus revenue growth and 20%-plus operating income growth and upped estimates heading into 2025. The wider direct-to-consumer environment continues to shift in Netflix’s favor with peers rationalizing spend and raising price, the analyst tells investors in a research note. UBS believes industry consolidation “would only accelerate these trends and rationalize the market.” In contrast, Netflix has sustained investment and stands to benefit from a “robust” content slate in Q4, supporting continued subscriber growth while enhancing its ability to drive monetization through pricing and advertising demand, contends the firm. It believes Netflix’s Christmas Day programming – two “favorable” NFL matchups plus Squid Games 2 – will jumpstart its growth in 2025.