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Netflix's 3-Year Deal with NFL Creates Compelling Value Proposition, Says Jefferies Analyst

By Don Francis, Editor
May 16, 2024 8:02 AM UTC
Netflix's 3-Year Deal with NFL Creates Compelling Value Proposition, Says Jefferies Analyst

Jefferies's Andrew Uerkwitz reiterated their Strong Buy rating on Netflix (NASDAQ: NFLX). The analyst also maintained a $655 price target.

Uerkwitz expressed optimism about Netflix and the NFL's 3-year deal, noting that the company will pay less than $150M per game to stream two games on Christmas Day. The analyst thinks the deal will create a "compelling value proposition" for the company's emerging ad business and that the terms are desirable.

With further information expected at Netflix's "Upfronts event" and an anticipated "dramatic" increase in advertiser interest compared to earlier predictions, Uerkwitz maintained their Strong Buy rating and a price target of $655.

The analyst's positive outlook on Netflix aligns with the sentiment of other top-rated analysts. According to data from WallStreetZen, 62.5% of top-rated analysts currently rate NFLX as a Strong Buy or Buy, while 37.5% see it as a Hold. Notably, no analysts recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that NFLX's upcoming year will deliver earnings per share (EPS) of $17.42. If the analysts are right, NFLX's next yearly EPS will be up by 18.4% on a year-over-year basis.

Investors may find the performance of NFLX stock encouraging. Since the company's last quarterly report on March 31, 2024, the stock price has increased by 1%. On a year-over-year basis, NFLX has seen a substantial gain of 82.7%. During the same period, NFLX has outpaced the S&P 500, which has shown a growth of 28.3%.

Andrew Uerkwitz, the Jefferies analyst, has a solid track record in the field. Ranked in the top 17% out of 4,586 Wall Street analysts by WallStreetZen, Uerkwitz boasts an average return of 9.6% and a win rate of 57.1%. Their specialization lies in the Communication Services and Industrials sectors, among others.

Netflix, Inc., the subject of Uerkwitz's analysis, provides entertainment services to its members. The company offers a wide range of content, including TV series, documentaries, feature films, and mobile games across various genres and languages. Netflix members can access streaming content through various devices, such as TVs, digital video players, television set-top boxes, and mobile devices. Additionally, the company provides DVD-by-mail membership services within the United States. As of now, Netflix has approximately 222 million paid members in 190 countries. The company is headquartered in Los Gatos, California and was incorporated in 1997.

Is Netflix a Buy, Hold or Sell?

WallStreetZen tracks the performance of nearly 4,000 Wall Street analysts, whom we rank by average returns, frequency, and win-rate (backtested over multiple years).

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WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.

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