On Thursday, BofA Securities expressed a positive outlook on Netflix (NASDAQ: NFLX) stock, raising the price target to $1,000 from the previous $800, while maintaining a Buy rating. The adjustment follows a record-breaking live sports event hosted on the streaming platform.
Netflix recently achieved a significant milestone by streaming the Jake Paul vs. Mike Tyson boxing match, which attracted 60 million households. At its peak, the event saw 65 million concurrent streams and garnered 108 million global live viewers from the opening to the closing bell.
This event has been recognized as the most-streamed sporting event ever, marking a significant achievement for Netflix in terms of its ability to reach a global audience for live events.
Despite encountering some technical issues during the streaming, the event is perceived as a positive development for Netflix's ambitions in live sports content and its potential to drive growth in advertising revenue.
The success of the boxing match also suggests to sports leagues and promoters that Netflix is capable of delivering live viewership numbers that rival or even surpass those of traditional linear television networks.
The analyst from BofA Securities reiterated the Buy rating and increased the price objective to $1,000, now reflecting approximately 30 times the calendar year 2026 estimated EBITDA, up from the earlier multiple of around 28 times. This revision is based on the continued positive earnings momentum and the evolving opportunities in advertising and live event streaming.
Netflix's strong brand, leading global subscriber base, reputation for innovation, and increased visibility in growth drivers are factors that, according to BofA Securities, support the belief that Netflix is well-positioned to continue to outperform in the market.
In other recent news, Netflix Inc. (NASDAQ:NFLX) has been making headlines with a flurry of recent developments. Pivotal Research raised its price target for Netflix to $1,100, maintaining a buy rating, following the successful Tyson/Paul fight event streamed by approximately 65 million households. This event has led to an upward revision in subscriber and Average Revenue Per User (ARPU) forecasts.
Evercore ISI reaffirmed an Outperform rating for Netflix, setting a price target of $775, in light of user growth that is expected to aid Netflix's goal to double advertising revenue by 2025. The company's ad-supported plan recently reached 70 million Monthly Active Users (MAUs).
However, Netflix is currently under investigation by France's elite financial crime unit, PNF, over allegations of tax fraud. Raids have been conducted at the company's Paris and Amsterdam offices as part of this ongoing probe.
Amid these developments, Netflix announced the departure of executives Dean Garfield and Rachel Whetstone, as the search for a new chief global affairs officer begins.
Guggenheim and Jefferies maintained a positive stance on Netflix, raising their price targets and maintaining Buy ratings on the shares. Guggenheim's revised target is supported by the belief that Netflix will sustain its core streaming business while successfully growing its newer ad-supported and gaming segments.
Jefferies anticipates that Netflix will gain over 10 million subscribers in the fourth quarter, driven by a strong content lineup. These are just a few of the recent developments for Netflix.
InvestingPro Insights
Netflix's recent success in live sports streaming aligns with several key metrics and insights from InvestingPro. The company's market cap stands at an impressive $377.81 billion, reflecting its dominant position in the entertainment industry. This is further supported by an InvestingPro Tip highlighting Netflix as a "prominent player in the Entertainment industry."
The streaming giant's financial health appears robust, with revenue for the last twelve months reaching $37.59 billion, marking a 14.8% growth. This strong performance is mirrored in the stock's market behavior, with Netflix trading near its 52-week high and showing a remarkable 86.09% return over the past year.
An InvestingPro Tip suggests that Netflix is "trading at a low P/E ratio relative to near-term earnings growth," which could indicate potential for further stock appreciation. This is particularly relevant given the company's recent foray into live sports streaming, which may open new revenue streams and growth opportunities.
For investors seeking more comprehensive analysis, InvestingPro offers 21 additional tips for Netflix, providing a deeper understanding of the company's financial position and market outlook.
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