Netflix: Seaport upgrades to Buy ahead of Q4 earnings

Published 01/16/2025, 11:50 AM
© Reuters
NFLX
-

Investing.com-- Seaport upgraded its rating on Netflix Inc (NASDAQ:NFLX) on Wednesday, citing expectations for higher subscriber growth as the streaming giant prepares to report its fourth-quarter earnings next week. 

Seaport upgraded Netflix to Buy from Neutral, with a price target of $955- representing an upside of 12.5% from Wednesday’s close. 

The brokerage said it expects higher than initially anticipated additions in members- at 9 million in the fourth quarter, compared to prior expectations of 5.7 million.

Seaport also sees Netflix’s original content providing strong tailwinds to the stock, especially with the release of the second season of smash hit Squid Games during the quarter.

The brokerage said advertising growth, more top content projects and the winning of live sports rights- such as the Jake Paul  vs. Mike Tyson match- all heralded a positive quarter.

“NFLX should remain a core holding due to top-line growth, OI margin expansion, and FCF conversion,” Seaport analysts wrote in a note. 

Netflix will report its December quarter earnings on January 21. The company is expected to clock earnings per share of $4.2 on revenue of $10.13 billion.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.