UBS bumps PT on Netflix by $215 as momentum to persist on content material, pricing

Investing.com — Netflix Inc (NASDAQ:NFLX) is ready to keep up robust operational momentum into 2025, benefiting from business shifts and its sturdy content material slate, UBS mentioned in a observe, elevating its value goal and estimates for the streaming large.

UBS bumped its value goal on the inventory to $1040, from $825.

The brokerage sees Netflix as the principle beneficiary of structural modifications within the media panorama, with rivals chopping spending and consolidating. In distinction, Netflix’s sustained funding in authentic content material, together with new seasons of Stranger Issues, Squid Sport, and Wednesday in 2025, will assist subscriber development and monetization by means of pricing and advert income.

“The broader DTC setting continues to shift in Netflix’s favor with friends rationalizing spend and elevating value. Trade consolidation would solely speed up these developments and rationalize the market,” analyst mentioned.

UBS expects Netflix so as to add 32 million subscribers in 2024, up from 30 million this yr, with one other 22 million in 2025. Value will increase in choose markets and a doubling of advert income subsequent yr will additional increase development, UBS mentioned.

The observe highlighted Netflix’s capability to develop income quicker than content material spending, enhancing free money circulation and working leverage.