Yahoo Finance media reporter Allie Canal details Netflix stock’s latest upgrade from Jefferies analysts.
DAVE BRIGGS: Netflix also receiving some Wall Street love. What can you tell us there?
ALLIE CANAL: Yeah, Jefferies upgrading the stock to buy from hold and increased their price target to 385 bucks a share to $310. And this is due to some of those more longer term catalysts, like the platform’s recently debuted ad tier, along with its crackdown on password sharing. Jefferies estimated that revenue and adjusted EBITDA will come in well above Wall Street estimates in 2024. And that’s going to result in some positive margin upside and valuation expanding back towards historic averages.
So if you’re a Netflix investor, this is something that is going to take some time. You’re not going to see immediate changes this year, but perhaps in 2024, we’ll be able to see some of the benefits of what Netflix is doing right now. Wait and see. Shares were up a little bit more earlier today. They’ve pared back some of those gains, but right now, roughly 1%.