What Makes Netflix Inc. (NFLX) Attractive

Netflix Inc. (NASDAQ:NFLX) is one of the best communication services stocks according to Hedge Funds.

On December 17, James Heaney of Jefferies reiterated his optimism on Netflix, Inc. (NASDAQ:NFLX). Heaney assigned a Buy rating to the stock with a target price of $134. As per the analyst’s forecast, investors should expect an upside of almost 48% from the current level.

Netflix (NFLX) Ends 3-Day Run After $620-Million Tax Blow

Pixabay/Public Domain

Heaney downplayed a potential bidding war scenario related to the company’s potential acquisition of Warner Bros. Discovery (WBD), given a strong likelihood of the deal being finalized. He believes that the market has yet to price in the full synergies that would result from this transaction. Besides that, Heaney is also confident about the company’s organic growth prospects.

Peter Supino of Wolfe Research also reaffirmed his Buy rating on Netflix Inc. (NASDAQ:NFLX) on December 15. Supino lowered his price target from $139 to $121, which still leads to a 33% upside potential. The revised rating is part of Wolfe Research’s 2026 outlook adjustments for media & entertainment and telecom & cable segments.

Netflix Inc. (NASDAQ:NFLX) is a subscription-based entertainment service provider that streams television shows, films, documentaries, and more. It uses advanced algorithms to offer device compatibility and personalization for its global users. Subscribers can access an extensive library of content through internet-connected devices such as set-top boxes, laptops, and mobile phones.

While we acknowledge the risk and potential of NFLX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NFLX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.