Raymond James Reiterates Market Perform Rating on Netflix (NFLX)

Raymond James analyst Andrew Marok reiterated a Market Perform rating and {REMOVEPT} price target on Netflix (NASDAQ: NFLX)

The analyst comments: "Netflix reported 4Q member additions well ahead of expectations, with that strength flowing through to revenue (though slightly offset by a stronger USD). This quarter was as strong as we have seen from the company since the peaks of the pandemic, with execution across various areas including live events, ads, and margins all pointing upward. On live events, while the Paul/Tyson fight and NFL games were strong, management noted that they were not primary member growth drivers (growth was broad-based). Still, the concept is proven out, and we expect more to come (including the announcement of the 2027/31 Women’s World Cups) on this front. The ads business is hitting its milestones, with over half of new members in the 12 markets coming in through the ad tier, and a scheduled U.S. transition to in-house adtech slated for April. Finally, FY25 projections were all ahead of estimates despite FX headwinds as the company is taking price and engagement share while modestly boosting content spend. Fundamental tailwinds remain strong, but we maintain our Market Perform rating given high expectations, with shares remaining fairly valued at nearly 10x 2025E EV/Revenue (implied ~40x P/E) at after-hours trading levels."

For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.

Shares of Netflix closed at $858.10 yesterday.

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