🍿 2022-09-28 19:06:29 – Paris/France.
©Reuters.
By Senad Karaahmetovic
An Atlantic Equities analyst has raised Netflix (NASDAQ 🙂) shares to “Overweight” as he believes the revenue opportunity of the next ad-supported option is not reflected in the price.
The analyst sees Netflix capable of generating $8 billion in revenue by 2025, which could represent up to 20% of total revenue at that time.
“Some subscribers will downgrade to the cheapest ad-supported tier, but we think Netflix's high viewership numbers mean that any 'downgrade' will be very positive for overall ARPU due to high ad rates. We now estimate that Netflix's US ARPU could nearly double over the next three years,” the analyst explained in a client note.
The new rating also reflects higher EPS estimates for 2024, which now stand at $14,14 (from $12,71), while estimates for 2025 have also been raised. The new price target of $283 implies a potential upside of 26% from current levels.
This is Netflix's fourth rise this month, after Oppenheimer (NYSE:), Evercore (NYSE 🙂 ISI and Macquarie moved up a notch on their respective valuation ladders.
Netflix shares rose more than 1% in Wednesday's pre-opening. Shares of NFLX were down 2,5% in September, although they were up around 5,5%.
SOURCE: Reviews News
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