Jefferies initiates coverage of Netflix (NFLX) with Buy rating, $85 price target ahead of Q3 earnings
What happened
Jefferies initiated coverage of Netflix (NASDAQ: NFLX) with a Buy rating and an $85 price target, implying more than 20% upside from the last close near $70.57. Analyst John Colantuoni argued Netflix can sustain earnings growth through higher subscription prices, advertising expansion, and improving operating margins, projecting annual EPS growth above 14% over the next decade and per-member revenue growth of roughly 6%. He also expects Netflix's standard subscription — currently about 60% cheaper per viewing hour than competing U.S. services — to narrow that gap to 50% by 2029 via ~7% annual price increases, and forecasts advertising revenue growing ~35% annually.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- Netflix (NFLX): direct beneficiary of the bullish initiation; shares ticked up ~0.6% in premarket trading after the call.
- Streaming peers (e.g., Disney, Warner Bros. Discovery, Paramount): a credible bull case on Netflix pricing power and ads could modestly support sentiment across streaming.
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