Evercore stays bullish on Netflix after its survey confirmed company’s strong position
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Evercore ISI reiterated their bullish rating on streaming giant Netflix (NASDAQ:NFLX) on Tuesday after its detailed quarterly survey on the company’s trends in the U.S. and Mexico.
The research firm said it is sticking with its stance that “Netflix is in the strongest position financially, fundamentally, and competitively that we have ever seen,” a view it has held since earlier this year.
From the survey, Evercore found that core metrics for the company in the U.S. and Mexico are stable, and its competitive position “remains as strong or stronger than ever.”
The survey also showed that subscription and advertising-based video on demand is growing, live content is helping with retention and acquisition, and there is an increasing adoption of games on the platform.
Evercore said it sees live events and gaming as two very promising long-term greenfield revenue opportunities for Netflix. The Christmas NFL games and Squid Games 2, which are coming in December, are also among the reasons for them to maintain their “outperform” rating.
NFLX has a PT of $750 from Evercore, hiked from $710, implying an upside of nearly 9%. Shares of the company were up more than 2% before noon. Stock is up 42% so far this year while the benchmark S&P index was up nearly 18%.