The analysts of oppenheimer reaffirm the best performer rating and a $415 per share price target for Netflix.
Shares of the streaming giant are trading 3.4% higher and reaching $314.
The analyst price target implies a 40% upside potential after the actions will recover more than 20% from the February highs. They believe the pushback is due to “fears of further turmoil over the password-sharing app and the nuanced release of its version with ads.”
“We believe that the Stocks are attractive at current levels“, say the analysts in a note sent to their clients.
“We believe that nothing has changed with respect to our original thesis: the advertising drives the total target market, the competence of content is relaxing and the Sharing of payment accounts will be an advantage in the long run“.
Analysts estimate that there is a $2 billion to $8 billion revenue growth opportunity from shared accounts.
Netflix tried in mid-2022 to start collect accounts individually and eliminate shared accounts, particularly in some Latin American markets. The measure was widely rejected by users and they decided to back down, although they revived the idea earlier this year. In addition, it promoted the idea of creating a cheaper subscription but one that included advertising.
He has also weighed in on the competition. “Competitors seem more focused on profitability, suggesting that we are already past the peak of competitionas shown by major seconds Netflix streaming net earnings in Q4recent efficiencies in content spend, and management statements in the fourth quarter about declining churn,” the analysts add.