With Netflix stock near record-high territory, some Wall Street analysts are raising their price targets on the streaming video leader.
Morgan Stanley analyst Benjamin Swinburne on Wednesday kept his overweight rating on Netflix stock and upped his price target to 1,050 from 830.
On the stock market today, Netflix stock dropped 3.2% to close at 889.55. Earlier in the session, it was up a fraction to 922.44. Netflix shares reached a record high of 941.75 on Dec. 11.
In a client note, Swinburne said he sees Netflix benefiting from advertising sales growth with its ad-supported service tier.
Netflix stock warrants a premium multiple because it is the streaming leader "by a wide margin," Swinburne said.
On Sunday, Oppenheimer analyst Jason Helfstein raised his price target on Netflix stock to 1,065 from 825 and maintained his outperform rating.
Netflix is "the only investable mainstream media stock," Helfstein said. The internet television network is benefiting from industry-low churn and a virtuous cycle of successful programming initiatives. Meanwhile, the competition continues to weaken, he said.
Netflix Stock On IBD 50 List
However, not all analysts are comfortable with Netflix stock after its steep rise.
On Monday, Loop Capital downgraded Netflix stock to hold from buy but increased its price target to 950 from 800.
The firm said Netflix "has rarely, if ever, looked better positioned than it does currently." But Loop believes its shares are approaching fair value.
Netflix is on the flagship IBD 50 stock list.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
