Netflix,Inc. (NASDAQ: NFLX) shares have weakened from $609 to $162 since the beginning of January 2022, and the current price stands at $186.
Investment firm Wedbush has a positive view of the shares of this company, and it reported that Netflix has the potential to beat second-quarter expectations.
Investment firm Wedbush has a positive view
Investment firm Wedbush upgraded shares of Netflix this Monday and reported that Netflix has the potential to beat second-quarter expectations.
Michael Pachter, an analyst from Wedbush, assigned a price target of $280 on Netflix shares which imply a more than 40% upside compared with the current price.
Netflix announced two substantial changes to its business model recently, cracking down on password sharing and introducing an ad-supported subscription. According to Wedbush, these changes are a good idea, and according to estimates, Netflix’s massive content lineup in 2022 could also drive subscriber growth.
Investment firm Wedbush said that Netflix holds a nearly insurmountable competitive advantage over rivals, and the current share price could be a good entry-level for long-term investors. Analyst Michael Pachter added:
While it is possible that the company will once again issue downbeat guidance for Q3, we think that the staggered release date for Stranger Things will reduce churn, and once again, we think that Netflix is positioned to grow.
On the other side, the uncertainty because of the Russian-Ukrainian war, high inflation, and the rising risks of the recession remain investors’ focus.
Netflix is a stable company with a bright future, but investors should consider that if the U.S. stock market enters a more significant correction phase, the shares of Netflix could be at lower levels.
