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Netflix (Nasdaq: NFLX) has received a favorable upgrade from Wolfe Research, boosting its stock rating to “outperform” from “peer perform” following impressive fourth-quarter results. Analyst Peter Supino has set a new price target of $1,100 for Netflix shares, suggesting a potential increase of 15.3%.

This optimistic outlook stems from Netflix’s milestone achievement of surpassing 300 million paid memberships. Supino emphasized Netflix’s distinctive growth trajectory, notable scale, and profitability, pointing out its superior ability to monetize content and engage users compared to competitors. Although there is an anticipation of slower sales growth in the next couple of years, Supino predicts a more gradual decrease due to Netflix’s expanding strategies.

Analysts Continue to Champion Netflix’s Stock

The robust performance report has led to a significant surge in Netflix shares, rising over 9% on the day the earnings were announced. This marks the stock’s best daily performance since October 18.

Over the past year, Netflix has seen its stock rise by more than 93%, reflecting strong market confidence. Among the 48 analysts covering Netflix, a substantial majority, 32 in total, recommend the stock as a buy or strong buy. This consensus underscores the positive sentiment surrounding Netflix’s future prospects.

On January 23, 2025, Netflix opened at $957.005, with fluctuations between a low of $954.3442 and a high of $984.419 during the day. By 11:31 EST, the stock price was $976.7. Over the past year, the stock has ranged from a low of $542.01 to a record high of $999.0, illustrating significant growth.

Key financial metrics include a market capitalization of $417.498 billion, a trailing P/E ratio of 49.23, and a forward P/E ratio of 32.61. These figures highlight Netflix’s substantial market presence and investor confidence.

Netflix Remains a Solid Pick

Netflix’s financial health is further reflected in its revenue of $37.587 billion and a trailing EPS of $19.84. With a book value of $53.153 and a price-to-book ratio of 18.38, Netflix demonstrates strong financial fundamentals. Analysts have set a target price range for Netflix, with a high of $1,494.0 and a low of $695.0, while the mean target price is $1,043.021. The recommendation mean stands at 1.91304, reinforcing the buy recommendation.

The recent closing prices show a consistent upward trend in Netflix’s stock value. On January 22, 2025, the stock closed at $953.99, up from $869.68 on January 21. This growth pattern is evident in earlier dates as well, with prices gradually increasing from $828.40 on January 14 to $953.99 on January 22.

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