Pia Singh 5:44 a.m.: Netflix shares could gain nearly 20% from here, according to Oppenheimer Oppenheimer is more bullish on Netflix, citing the streaming giant’s ability to grow its long-term subscriber base.
Analyst Jason Helfstein reiterated his outperform rating and raised his price target on shares by $110 to $725, which suggests a roughly 19.9% potential upside from Friday’s close
“We believe NFLX’s dominance will continue, given its clear advantage in producing high-engagement content and monetizing that content more effectively than peers.”
The analyst estimated a high likelihood of subscriber additions beating Wall Street’s estimates in the future, given forecasts assume a major slowdown in paid sharing and ad-tier subscriptions.
Helfstein sees subscribers being 17 million higher than the consensus over the next three years as competition in streaming eases with other streaming platforms prioritizing profitability — while Netflix acquires more content and retains its dominant market share in the U.S.
Shares of Netflix have jumped more than 24% this year.
NFLX YTD mountain NFLX year to date “We believe NFL X’s initiatives such as password sharing rules, advertising, and optimizing subscriber plan choices will drive subscriber growth and average revenue per membership (ARM), therefore leading to higher revenue,” Helfstein wrote in a Sunday note
