This post was originally published on this site
The analysts, who have an Outperform rating and a $515 price target on the stock, said the firm sees a positive impact from the streaming company’s paid sharing and advertising tier through FY25.
“Overall, these initiatives should boost revenue by ~40% vs. FY22 at very high incremental margins,” they wrote. “We think the complexity of the multiple drivers are being underappreciated by investors, as we have only seen 2% of the benefit so far.”
“Our analysis indicates a clear path back to double-digit revenue growth, which should support ~25x PE,” they added.
Oppenheimer believes Netflix is poised to recapture half of account-sharing households, with its estimates implying Netflix will directly recapture 46% of the total estimated 100 million account sharers by the end of ’25.
