March 28, 2024

Many financial experts on Wall Street currently have a positive outlook on Netflix (NFLX), with the stock receiving 40 Buy ratings and 16 Hold ratings. Analysts at Wedbush have also shown their optimism by increasing the stock’s price target from $615 to $725 and assigning it an ‘Outperform’ rating. Nevertheless, they’ve decided to exclude Netflix from their “Best Ideas List.”

The firm anticipates a slowdown in the stock’s extraordinary growth experienced in 2023. Reese attributed the company’s robust subscriber growth in 2023 largely to the crackdown on password sharing and the introduction of an advertising tier to limit subscriber’s turnover, or ‘churn’. The firm believes that the ad tier will continue to mitigate churn moving into 2024 and beyond.