Netflix’s (NFLX) upcoming launch of multiple, new high-tech features will be significantly positive for NFLX, BMO Capital wrote in a note to investors today.
The bank kept a $1,200 price target and an Outperform rating on the name.
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BMO’s Take on NFLX’s Initiatives
NFLX will start utilizing AI to help its users find content while redesigning its user interface and making content discovery more interactive, BMO reported.
These moves will lower the number of customers dropping the service, increase its viewership, and raise the firm’s ad revenue, the bank predicted.
BMO’s View of Tariffs’ Impact on NFLX
The company’s policy of generally streaming locally produced content to its viewers, along with its cost-effective sourcing of content, should enable it to keep providing a good user experience while maintaining its pricing power, even if tariffs are imposed on TV shows and movies, BMO Capital believes.
More Information About NFLX
Analysts on average expect the company’s earnings per share to climb to $25.78 this year from $19.83 in 2024. The average estimate calls for its EPS to rise to $30.78 in 2026.
In the last month, the shares have advanced 22%, while they have gained 15% in the last three months.
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This article is originally published at Insider Monkey.
