Netflix stock rose Tuesday after getting a bullish report from investment bank JPMorgan. Analysts are mostly positive on the streaming video leader ahead of its third-quarter earnings report next week.
"We remain positive on Netflix shares heading into Q3 earnings on Thursday, Oct. 17, while recognizing elevated expectations," JPMorgan analyst Doug Anmuth said in a client note Tuesday.
He added, "We remain bullish on Netflix's ability to grow revenue in the midteens in 2024 and 2025 and low double-digits in 2026, further expand margins, and drive multiyear free-cash-flow growth."
Positive catalysts include subscriber growth from a paid-sharing initiative and revenue growth from advertising, he said.
Anmuth rates Netflix stock as overweight with a price target of 750.
Netflix Stock In Buy Zone
On the stock market today, Netflix stock rose 2.8% to close at 721.76.
Netflix stock has been trading in a tight range since it broke out of a cup base at a buy point of 697.49 on Aug. 20, according to IBD MarketSurge charts. It is in the 5% buy zone of that breakout, based on IBD trading guidelines.
On Monday, two analysts issued positive reports on Netflix while another was negative.
Piper Sandler analyst Matt Farrell upgraded Netflix stock to overweight from neutral and raised his price target to 800 from 650.
"Our prior neutral stance was centered around valuation, but now, we appreciate the company is expensive for a reason," Farrell said in a client note. Netflix "is a clear leader in streaming."
Elsewhere, TD Cowen analyst John Blackledge reiterated his buy rating on Netflix stock and upped his price target to 820 from 775.
Barclays Worried About Revenue Growth
Meanwhile, Barclays analyst Kannan Venkateshwar downgraded Netflix to underweight from equal weight and kept his price target of 550.
Venkateshwar said he believes revenue growth will become more difficult for Netflix now, given its massive scale.
Netflix stock is on the IBD 50 list.
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