Netflix price target raised to $965 from $795 at Macquarie

Macquarie analyst Tim Nollen raised the firm’s price target on Netflix (NFLX) to $965 from $795 and keeps an Outperform rating on the shares. The firm estimates Netflix will finish 2024 with more than 33M subscriber adds globally, totaling 293M, and says there is a “decent chance” the company beats this given the popularity of the Mike Tyson fight, two NFL Christmas games, and the Squid Game 2 release. However, this is the last time Netflix will report subscribers, so investors need new metrics on which to focus, the analyst tells investors in a research note. Macquarie believes it is possible Netflix’s subscription growth will slow from here as paid sharing enforcement has largely cycled through, but says a slowing rate of sub growth does not necessarily mean slower growth for the company overall. Netflix has “several further growth drivers,” contends the firm. It estimates the company made money on the NFL Christmas games, and is optimistic that while content costs will rise, it will still push through 30% operating margin in 2027.