CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target by $40 to $650 using a forward TEV/EBITDA of 29.7x, below the three-year historic average at 32.0x. We keep our EPS estimate at $17.05 in 2024 and $20.60 in 2025, both near consensus. On valuation, we are comfortable with a wider risk premium given NFLX is widening its lead over its competitors, in our opinion, and has new revenue streams (advertising, ad-pay plans, and paid share members) to spur growth. We believe NFLX has a best-in-class technology platform, programming, and global distribution. The company never stops innovating and management is disciplined with a $17B programming and content annual budget. NFLX has a major opportunity as TV viewers shift to streaming from linear networks, while most of its direct competitors have to transition from legacy networks to video streaming. Catching up to NFLX will be next to impossible to deliver “big hit” episodes in different regions/countries, expanded sports documentaries and events, and low-cost productions that entertain viewers.