Netflix: JPMorgan, Loop Capital bullish on streaming stock
Netflix's (NFLX) stock is receiving bullish sentiments from analysts at Loop Capital and JPMorgan on Monday. Loop Capital has raised its price target for the streaming giant to a staggering $700 per share and reaffirming its Buy rating on the stock.
Echoing this optimism, JPMorgan has reaffirmed its Overweight rating on Netflix, with analysts expressing confidence in the company's ability to accelerate revenue growth and expand margins throughout 2024.
Yahoo Finance's Madison Mills and Josh Lipton break down the details.
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Editor's note: This article was written by Angel Smith
Video Transcript
JOSH LIPTON: Moving on. Netflix getting a boost today on the back of a few bullish calls both JP Morgan. And Loop capital reiterated their overweight. And buy ratings, Loop Capital raising the firm's price target on Netflix to 700.
This one was interesting. So Netflix, by the way, hit a 52 week high in today's trade, Madi. That's up about 20% now since their Q4 report.
Team at JP Morgan continues to like what they see here. Pound the table for this one. Among the reasons they told their clients, they think Netflix can accelerate revenue growth in 2024.
They think they can expand margins and drive a year free cash flow ramp. They talk about on improving profit and cash content discipline. Also, I love how they talk how Netflix is building out this sports on content, in particular.
MADISON MILLS: Well, we know that they're going to be streaming that fight between Mike Tyson and Jake Paul, which we were talking about a little bit earlier. Today, they've got this WWE partnership in the works. There's this question out there about how much Netflix is going to be able to profit off of the interest in live sports and streaming.
But also, they were so successful in their recent earnings print. They kind of started this narrative of earnings season that it's not just the big tech names that are going to succeed with. I mean, remember that one analyst who coined the Magnificent 8, and included Netflix in those eight names.
It's really just done so incredibly well. And I think their ability to get people to pay for a subscription that doesn't have passwords is a really critical part of that.
JOSH LIPTON: Yeah, I like the Mike Tyson Jake Paul fight which by the way, is this summer it's in July. They say we believe the fight could be the most watched boxing fight ever given the ease of access and Netflix's large global subscriber base.
MADISON MILLS: Yeah, I mean the stock up 32% year-to-date. I feel like me and my friends watching love is Blind reunion definitely led to that. And then you and your friends this summer. It's going to be a double win for them.
JOSH LIPTON: You're going to watch Tyson?
MADISON MILLS: I am not going to watch Tyson.
JOSH LIPTON: I'm going to try to sell you.
MADISON MILLS: You can pitch me on it on the break.
