Oppenheimer: remain bullish on NFLX following WBD deal

Oppenheimer analyst Jason Helfstein reiterated an Outperform rating and $145.00 price target on Netflix (NASDAQ: NFLX).

The analyst commented: "NFLX is buying Warner Bros Streaming & Studios (HBO Max) for $83B EV vs. NFLX current EV of $436B at a $99 share price. This equals ~4.5 years of forward NFLX FCF
pre-deal. Deal expected EPS-accretive Year 2, or FY28 assuming late FY26 close. We estimate deal at 14x FY29E (Year 3) PF EV/EBITDA assuming $2.5B in fixed opex synergies (mostly tech and other), before any revenue or content synergies. With combined US viewing share <10% (8% for NFLX and 1.3% for HBO), >50% of YouTube viewing via CTV, and platforms such as Reels, TikTok, and YT generating material US time spent, we see the deal passing antitrust. Deal includes a $5.8B breakup fee. We remain bullish on NFLX shares and reiterate our Outperform rating."

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 $103.22 yesterday.

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