Netflix (NFLX) is on the move.
At the moment, it’s consolidating around $224, but could soon break higher. Helping, analysts at Evercore ISI called the company’s ad-supported offerings “one of the biggest catalysts in the Internet sector,” as quoted by Barron’s. The firm also upgraded NFLX to an outperform rating with a price target of $300 a share from $245.
“A lot of Netflix’s current subscriber turnover stems from increased price sensitivity, they added. A lower-priced, ad-supported offering, could help those users return, as well as drive margin growth and up to $2 billion in incremental revenue by 2024, the analyst estimated. Plans to clamp down on password sharing could add an incremental $500 million to $1 billion in revenue,” added the firm.
In pre-market, shares of NFLX are up $4.88 to $229 a share.