„Netflix Inc“ akcijos (NASDAQ: NFLX) have nearly doubled already from their year-to-date low but a Bank of America analyst says there’s more where that came from.
Netflix shares have upside to $370
The streaming giant, on Tuesday, won a double upgrade from Jessica Reif Ehrlich who now recommends pirkti „Netflix“ akcijas and sees upside in them to $370 – up another 20% from here.
Her bullish view is chiefly predicated on the recently launched skelbimų palaikoma pakopa and the company’s commitment to cracking down on password sharing.
Despite slower sub growth, we believe efforts to improve monetisation via a value-oriented ad tier and significant conversion of password sharers has the potential to drive operating [and] financial gains.
Netflix will have more than 250 million subscribers by 2024 as it still has a significant room to grow outside of the United States, the analyst added. For the year, „Netflix“ akcijų are still down close to 50%.
Netflix stock is a favourable risk-reward
Ehrlich is particularly impressed that Netflix continues to lead the switch to non-liner media despite increased competition. Its entry in the advertising-based video-on-demand, she added, will be accretive because of:
Company’s ability to drive engagement; extraordinary advertiser demand on its ability to reach younger demos and offer exposure to cordcutters and cord-nevers; likelihood of receiving premium CPMs; and potential to drive incremental subs growth.
The Bank of America analyst forecasts a compound annual growth rate of 9.0% and 10% respectively for its revenue and EBITDA from 2021 to 2024.
Apie 28 kartų, Ehrlich sees the risk-reward in Netflix shares as favourable.