Loop Capital Upgrades Netflix, Inc. (NFLX) To Buy, Lifts Price Target

Netflix, Inc. (NASDAQ:NFLX) is among the Renaissance Technologies Portfolio: 10 Biggest Stocks. On September 17, Loop Capital analyst Alan Gould upgraded the stock’s rating to Buy from Hold, and also lifted his price target to $1,350 per share from $1,150.

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The revised forecast represents a further 11% upside potential for the stock, which has already gained 37% year-to-date, as of the close of business on September 23.

Gould acknowledged that his prior downgrade of Netflix, Inc. (NASDAQ:NFLX) was a mistake and noted a strong fundamental backdrop for the company in his recent adjustment:

“We are upgrading our rating back to Buy based on exceptional 3Q engagement, a strong 4Q content slate, higher long-term margin assumptions as each dollar of content is generating more revenue, which leads to higher earnings and free cash flow. Our NFLX downgrade in mid-December with the stock in the low $900s was wrong, but after a strong first half, the stock has tread water the past quarter. At the time of our downgrade management was guiding to 11-13% revenue growth in 2025; it is now 16-17%.”

The Loop Capital analyst credited the latest seasons of Squid Games, Wednesday, and KPop Demon Hunters for Netflix, Inc. (NASDAQ:NFLX)’s growing engagement.

Moreover, he raised his third-quarter estimates for the streaming giant and also highlighted its dominant position in the entertainment industry despite stiff competition.

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Disclosure: None.