Netflix extends rally with analysts bullish on coming burst of content

New seasons of “Money Heist” and “Lucifer” are expected in September, while new episodes of “Cobra Kai” and “You” should come later this year
Shares of Netflix (NFLX) are trading higher again on Wednesday following several days of outperformance as the streaming giant enters a busy period of premiers for new series and movies. JPMorgan analyst Doug Anmuth raised his price target on the stock to $705 as he continues to like Netflix shares toward year-end based on strength of its second half of the year content slate. On Tuesday, his peer at Atlantic Equities had increased his target on Netflix to a “Street-high” $780 given his belief that improving sentiment and confidence in long-term growth will drive material multiple expansion.

CONTENT SLATE STRENGTH: JPMorgan analyst Doug Anmuth raised the firm’s price target on Netflix to $705 from $625 and reiterated an Overweight rating on the shares. The analyst continues to like Netflix shares toward year-end based on strength of its second half of the year content slate, “greater distance from pandemic pull-forward,” and the “significant global secular streaming opportunity” with Netflix “only” 20%-25% penetrated. Further, he believes the company’s user trends continue to improve from second quarter levels, with his analysis of quarter-to-date global downloads through August tracking to third quarter net subscriber additions of 2.7M. While this is below management’s 3.5M guidance, Anmuth expects an acceleration in September, he noted.

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