Investment bank TD Cowen earlier today raised its price target on Netflix Inc (NFLX) to $1,325 from $1,150 while keeping a Buy rating on the shares.
The investment bank increased its price target to reflect the previous success of the company’s ad-supported tier and its bullishness on the tier’s outlook.
Why TD Cowen Is Upbeat on Netflix’s Ad Tier
The investment bank noted that the tier’s monthly average user base had jumped to 94 million this month from 70 million last November.
TD Cowen expects Netflix Inc (NFLX)’s new ad technology to cause the growth of the tier’s user base to accelerate. The new technology is slated to boost the company’s data analytics and ad formats.
TD Cowen also noted that Netflix Inc (NFLX) predicts that its ad revenue will double in 2025.
The Recent Price Action of NFLX
In the last month, the shares have jumped 20%, while they have gained 12% in the last three months.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
This article is originally published at Insider Monkey
Hedge Fund Resource Center