Investing.com –Loop Capital has upgraded Netflix Inc (NASDAQ:) from “Buy” to “Hold” given robust subscriber growth, mid-teens revenue growth and a strong slate of upcoming content.
Brokerage raised its price target for the stock from $800 to $950.
Netflix is expected to add more than 30 million subscribers in 2024, its second-best year behind 2020, thanks to successful programming like the Squid Game sequel and high-profile events like the Paul/Tyson boxing match and NFL Christmas games starring Beyoncé . rest.
The company also benefits from revenue growth in the mid-teens and expected operating margin expansion of 600 basis points by 2024.
Co-CEO Ted Sarandos has expressed excitement about 2025 programming, calling it Netflix’s strongest yet, while the company’s pricing remains competitive, especially at the ad-free and ad-supported tiers.
Advertising is expected to be a major source of revenue by 2026.
While share prices are at historically high valuations, the brokerage sees long-term potential for Netflix to grow its global subscriber base to over 450 million by the end of the decade, with margins reaching the mid-30% range.
Brokerage described the company’s 2025 guidance as “conservative.”
