What Analysts Think of Netflix Stock Ahead of Earnings

Key Takeaways

Netflix ( NFLX ) is set to report fourth-quarter results after the closing bell on Tuesday, with analysts holding mostly bullish ratings on the streaming giant.

Of the 19 brokers covering Netflix that tracked by Visible Alpha, 14 have a “buy” or equivalent rating, compared with four “hold” ratings and one “sell.” The consensus price target is about $905, roughly 7% higher than the stock's Thursday close.

Wedbush Securities this week issued a $950 target on the shares, pointing to Netflix ’s “virtually insurmountable lead” in the streaming wars. The company’s $6.99 ad-supported subscription tier has limited customer turnover, the firm said, “lowering pressure on adding new subscribers,” which should continue to drive revenue growth over the next few years.

JPMorgan, Oppenheimer Lower Netflix Price Target

JPMorgan, which lowered its price target to $1,000 from $1,010, said the streamer’s ad-supported tier and password-sharing crackdown “should further expand NFLX’s subscriber base while driving high-margin incremental revenue.” Oppenheimer also trimmed a bullish price target this week.

Overall, Wall Street expects Netflix’s revenue for the latest quarter to grow 15% year-over-year to $10.13 billion and for earnings to climb to $1.84 billion, or $4.23 per share, from $937.8 million, or $2.11 a share.

Notably, Netflix will no longer report quarterly subscriber numbers starting with the Tuesday results.

The stock, which ended yesterday a bit over $842, is up roughly 70% over the past 12 months.

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