DBS Raises Netflix (NFLX) Target Price on Subscriber Momentum, Maintains Buy

Netflix Inc. (NASDAQ:NFLX) is one of the 10 best tech stocks to buy according to billionaires right now. On Tuesday, June 10, media portal ‘Deadline Hollywood’ reported that Netflix’s Co-CEO Ted Sarandos has committed to invest around $1.0 billion on content creation in Spain by 2029. Sarandos, speaking at Netflix’s Tres Cantos Madrid hub, highlighted the strong contribution from Spanish content which has generated over 5 billion hours of viewing on Netflix over the last decade. The company had announced similar plans ($1 billion spend over four years) for Mexico in February.

While this news is positive for Netflix, on June 9, DBS analyst Sachin Mittal also reiterated a Buy rating on it and raised his target price from $1,195 to $1,416. His revised forecast is based on stronger-than-expected financial and subscriber performance during the latest quarter.

DBS Raises Netflix (NFLX) Target Price on Subscriber Momentum, Maintains Buy

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According to Mittal, Netflix delivered solid results, with both operating profit and normalized earnings coming in above market expectations. This financial outperformance was supported by better-than-expected subscriber growth as well as ongoing shifts in viewing habits from linear TV to streaming.

While the analyst highlights slowing growth in the mature markets as a risk, he also highlighted several strategic initiatives that are likely to support future revenue growth. These include the rollout of ad-supported plans, ongoing efforts to reduce password sharing and selective price increases.

Netflix Inc. (NASDAQ:NFLX) is a leading global streaming platform, offering a vast selection of movies, TV shows, and games with unlimited access on internet-connected devices. With a subscriber base exceeding 300 million across more than 190 countries, Netflix continues to shape the entertainment industry through constant innovation in content and user experience.

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