Netflix Gets Boost Ahead Of Q4 Earnings, Analyst Forecasts Net Member Adds Up 57%

Shares of Netflix Inc NFLX were climbing on Thursday, with optimism ahead of its fourth-quarter results on Jan. 21.

The estimate for the company's global paid net additions has been raised from 5.73 million to 9.02 million, according to Seaport Research Partners.

The Netflix Analyst: Analyst David Joyce upgrading the rating for from Neutral to Buy, while maintaining the price target at $955.

The Netflix Thesis: The company is "proving out its global original content, fan engagement, live sports streaming, and advertising capabilities," Joyce said in the upgrade note.

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The stock's premium valuation is justified by Netflix's rising share of highly rated content, award-winning original films and series as well as its streaming and connected TV advertising revenues, he added.

The upgrade in rating follows the recent pullback in the shares, given Netflix's "top-line and margin-expanding business model," while the estimate for the global paid net adds reflects "the special sporting events and seasonal new content releases," the analyst stated.

"Our channel checks suggest +26% growth in campaigns for ad buyers who were also buying in 4Q23," Joyce wrote. He added that Netflix's ad revenue could be up 160% to $609 million in the fourth quarter.

NFLX Price Action: Shares of Netflix were up 1.4% to $860.50 at the time of publication on Thursday.

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