Netflix Upgrade by Loop Capital

Investing.com — Loop Capital upgraded Netflix Inc (NASDAQ:NFLX) to "buy" from "hold," citing robust subscriber growth, mid-teens revenue growth, and a strong lineup of upcoming content.

The brokerage raised its price target on the stock to $950 from $800.

Netflix is expected to add over 30 million subscribers in 2024, marking its second-best year after 2020. This boost is driven by hit programming, including the sequel to Squid Game and high-profile events such as the Paul/Tyson boxing match and NFL Christmas games featuring Beyoncé at halftime.

The company is also benefiting from mid-teens revenue growth and projected operating margin expansion of 600 basis points in 2024.

Co-CEO Ted Sarandos expressed enthusiasm for the 2025 programming slate, describing it as Netflix's strongest yet. The company’s pricing remains competitive, particularly for its ad-free and ad-supported tiers.

Advertising is expected to become a significant revenue contributor by 2026.

Though the stock is at a historically high valuation, the brokerage sees long-term potential for Netflix to grow its global subscriber base to over 450 million by the end of the decade, with margins rising to the mid-30% range.

The brokerage characterized the company’s 2025 guidance as "conservative."