Top-rated Benchmark analyst Matthew Harrigan maintained his Sell rating on streaming giant Netflix (NASDAQ: NFLX) following a report of possible price hikes. According to these reports, Netflix is considering raising prices in select markets, including North America, after the actors’ strike ends. For reference, its last price increase was in January 2022. Nevertheless, the stock is slightly higher at the time of writing.
The analyst cited economic concerns and market volatility as reasons for caution. Harrigan reiterated a price target of $325 on the stock, implying a downside risk of 13.4% from current levels. Netflix’s competitors, Warner Bros. Discovery (WBD) and Walt Disney (DIS), are also raising prices.
Harrigan pointed out that the Writers Guild of America’s (WGA) new contract with Netflix would result in a rise in compensation, which would comprise just 0.2% or around $68 million of the company’s annual revenue. The analyst believes that the new deal may favor studios, with potential SAG settlements likely more demanding.
The analyst commented, “We continue to view Netflix as much more of a media than a tech name, although the company is seemingly executing well on its password sharing and [ad-based streaming] initiatives.”
Is Netflix a Buy or Sell Today?
Overall, analysts are cautiously optimistic about NFLX stock, with a Moderate Buy consensus rating based on 18 Buys, 12 Holds, and one Sell.
