Streaming giant Netflix (NASDAQ: NFLX) gained in trading after top-rated Loop Capital analyst
Alan Gould upgraded the stock from Hold to Buy and raised his price target to $500 from $425. Gould’s price target implies an upside potential of 19.4% at current levels.
The analyst emphasized improved fundamentals and compelling valuation as catalysts. Gould stated that Netflix could stand to benefit amidst rising competition, with the company’s competitors hiking the prices of their streaming services and slashing their spending on content. Netflix’s robust content pipeline and global production capabilities position it as the most resilient media player against the ongoing writer and actor strikes. Gould believes that the rising popularity of streaming, and the decline of traditional TV, could heighten Netflix’s growth prospects.
Analysts are cautiously optimistic about NFLX stock, with a Moderate Buy consensus rating based on 20 Buys, 12 Holds, and two Sells.
