A Wall Street analyst raised his price target on Netflix stock following positive results from subscriber surveys in the U.S. and U.K. Shares of the streaming video leader rose on the news.
Evercore ISI analyst Mark Mahaney on Monday reiterated his outperform rating on Netflix stock and upped his price target to 700 from 650.
On the stock market today, Netflix stock rose 0.4% to close at 649.
On May 20, Netflix stock broke out of a cup base at a buy point of 639, according to IBD MarketSurge charts. The 5% buy zone extends to 670.95.
"Netflix is in the strongest position financially, fundamentally and competitively that we have ever seen," Mahaney said in a client note. "And we see with live events and gaming two very promising long-term greenfield revenue opportunities. And of course, 'Squid Games 2' is coming soon!"
Netflix Stock On Two IBD Lists
Mahaney based his price-target increase on positive results from his firm's quarterly subscriber surveys.
He noted that Netflix should benefit from discontinuing its lowest-priced ad-free service, called the Basic Plan.
Also, the addition of live content such as comedy specials, WWE "Raw" pro wrestling, and NFL football games on Christmas Day should improve subscriber retention, he said. Some 60% of survey respondents said they are more likely to stay on the service is more live content is added, Mahaney said.
On Friday, CFRA Research analyst Kenneth Leon raised his price target on Netflix stock to 725 from 640 and kept his buy rating.
Netflix stock is on two IBD lists: IBD 50 and Big Cap 20.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
