MoffettNathanson Upgrades Netflix to Buy with 19% Upside

Analysts have upgraded Netflix's outlook from Neutral to Buy, highlighting a projected 19.05% upside. The company's annual revenue is expected to grow by 1.61%, indicating gradual improvement in performance. Investors should be aware of these shifts as they could affect stock prices significantly.

Date: 18-03-2025

AI Rating: 7

**Upgrade to Buy**: MoffettNathanson's upgrade of Netflix's outlook from Neutral to Buy suggests a more favorable future for the company's stock. This change indicates that analysts have confidence in Netflix's potential growth prospects in the near term.

**Analyst Price Forecast**: The average one-year price target for Netflix stands at $1,092.89/share, demonstrating an optimistic 19.05% upside from its current price of $918.00/share. This substantial forecast can positively influence investor sentiment and stock momentum.

**Projected Revenue Growth**: Netflix's projected annual revenue is reported to be $39,627MM, reflecting an increase of 1.61%. Although modest, this growth indicates stability and a forward momentum for the company, which may attract both institutional and retail investors.

**Earnings Per Share (EPS)**: The expected non-GAAP EPS is noted at 15.13. This figure is essential for evaluating profitability, and a positive EPS trend can validate higher stock prices as investors often seek companies demonstrating earnings growth.

**Institutional Ownership**: The report highlights increased institutional interest in Netflix with 4,492 funds reporting positions, an increase of 391 owner(s) or 9.53% in the last quarter. Increased institutional ownership can reflect growing confidence in the company's future, usually seen as a positive indicator for stock performance.

**Investor Sentiment Caution**: Despite the positive outlook, a put/call ratio of 1.24 suggests a bearish sentiment among some investors. It may indicate caution or hedging strategies, which could offset some of the enthusiasm reflected in the upgrades and forecasts.

Overall, the report presents a mix of optimism with the upgrades and forecasts, while indicating a need for investors to be aware of the prevailing bearish sentiment reflected in the options market.

Stocks: NFLX