Loop Capital on Wednesday upgraded Netflix (NASDAQ:NFLX) to “buy” from a previous investment rating of “hold,” citing exceptional engagement during Q3 and a strong Q4 content slate, among other things.
The research firm noted that engagement on the streaming giant’s platforms increased 17% from the beginning of Q3 until now, driven by the continuing run of Squid Game Season 3, Wednesday Season 2, and KPop Demon Hunters.
“NFLX is trending towards a record share of US TV consumption for the platform in 3Q. The US is over 40% of total revenue, and NFLX’s total revenue has historically been strongly correlated with its US share of TV consumption,” the research firm said.
Loop now expects Netflix to report Q3 revenue of $11.60B, translating to an 18.1% y/y growth, and earnings per share to come in at $7.11, both above the company’s guidance and the general consensus estimates.
NFLX has a price target of $1,350, hiked by $200, implying an upside of 12.5%.