The good news is that investor giddiness over streaming giant Netflix’s (NFLX) impressive returns is still in place. But not everyone is quite so pleased. Analysts are holding up well, and word from Wolfe Research analyst Peter Supino is all in favor. Investors are feeling the love too, and sent shares up 2.2% in Thursday afternoon’s trading.
Word from CNBC noted that Supino hiked the rating from Peer Perform to Outperform, and left an $1,100 price target in place. Supino noted that “premium valuation gives pause,” but followed that up by referencing the “…scarcity and preciousness of Netflix-like growth, scale and profitability.” With Netflix also offering the best reach, as well as content engagement, that only makes it superior to its peers in many ways.
However, Supino notes, the notion that Netflix may have topped out its growth is there, but perhaps not a short-term concern. Its returns on capital are accelerating, Supino noted, and, as he put it “…we think it could be a very, very long time before Netflix reaches a terminal growth rate.”
The Mob Out Front Would Like Price Cuts, Please
Netflix, when discussing its recent price hikes, noted that, sometimes, it simply must ask its membership for more money to ensure that it can provide the quality content they want. The membership, however, is perhaps less certain that there are not other sources of funding available, and are beginning to get restless, noted a report from Forbes.
In fact, Forbes brought together a collection of posts from X, among others, that feature the membership deeply concerned about the level of value involved. Users increasingly note that they are considering shutting down their Netflix accounts altogether over the increasingly frequent price hikes. Others believe the quality of Netflix content does not merit these price hikes, regardless of what Netflix itself says. But how much of this discontent will turn into action is unclear.
Is Netflix Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 20 Buys, seven Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 78.76% rally in its share price over the past year, the average NFLX price target of $986.46 per share implies 1.22% upside potential.
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