Netflix Gets Buy Upgrade from Seaport as Subscriber Growth Surges

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Seaport upgraded its rating on Netflix Inc (NASDAQ:NFLX) to Buy from Neutral on Wednesday, citing expectations for stronger subscriber growth ahead of the company's fourth-quarter earnings report next week.

The brokerage set a price target of $955 for Netflix, implying a 12.5% upside from Wednesday's closing price.

Seaport now anticipates higher-than-expected subscriber additions for the fourth quarter, projecting 9 million new members compared to the previous forecast of 5.7 million.

The firm also highlighted Netflix’s original content as a key driver for growth, particularly with the release of the second season of the popular show Squid Game during the quarter.

Seaport noted that advertising growth, additional top-tier content, and the acquisition of live sports rights, including the Jake Paul vs. Mike Tyson fight, contributed to a positive outlook for the streaming service.

“Netflix should remain a core holding due to strong top-line growth, operating income margin expansion, and free cash flow conversion,” the analysts stated.

Netflix is scheduled to report its earnings for the December quarter on January 21, with analysts expecting earnings per share of $4.20 and revenue of $10.13 billion.

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