Goldman Sachs analysts updated Netflix’s (NASDAQ:NFLX) price target to $600, up from $565, while maintaining their Neutral rating. This adjustment comes ahead of Netflix’s first-quarter 2024 earnings report on April 18, where current industry data, investor debates, and potential contributions from Netflix’s ad-supported tier to future revenue and operating income will be scrutinized.
The analysts highlighted the primary areas of interest for investors as the potential for subscriber growth, consistency in Netflix’s revenue acceleration and margin expansion for 2024, and the impact of the competitive landscape on Netflix’s market position, pricing power, and content investment.
Despite reaffirming a Neutral stance, Goldman’s raised price target reflects slightly improved operating estimates and an increased enterprise value to EBITDA multiple, attributing better visibility into Netflix’s revenue and margin outlook, moderated competition, and recent price hikes.