As expected, Netflix (NFLX) is pushing higher.
As we noted on November 14, “For one, it’s still benefiting from cord cutting. Just over the last nine years, 20 million households have ditched cable television. Two, analysts still love the stock. Three, earnings growth has been impressive again.”
Around that time, Deutsche Bank analysts upgraded the stock to Buy from Hold, with a target of $350. JP Morgan upgraded the stock to Overweight with a price target of $330 from $240. Wedbush analysts raised their target price on NFLX to $325 from $280 and said “Netflix is well-positioned in this murky environment” as it shifts its strategy. Pivotal Research Group’s Jeffrey Wlodarczak upgraded NFLX to a Buy from Sell, with a price target of $375, as well.
Since mid-November, shares of NFLX ran from about $290 to a current price of $325.59. From here, we’d like to see NFLX initially refill its bearish gap around $340. Then, we’d like to see it refill its other bearish gap around $500 with patience.
Helping, Wells Fargo just upgraded the NFLX stock from Equal Weight to Overweight and upped his price target to $400 from $300 a share. “After a period of turmoil around slowing subscribers and revenue growth, NFLX is using every arrow in the quiver,” Wells Fargo analysts said, as quoted by Yahoo Finance.
Not wanting to miss the NFLX party, Cowen analysts also raised their price target to $405 from $340. As also noted by Yahoo Finance, “Cowen analyst John Blackledge agreed Netflix will continue to be a leader in streaming, naming the stock the firm’s top large cap pick for 2023.”
In short, NFLX could see higher highs in the new year.