Netflix (NASDAQ:NFLX) stock is on the move Friday after getting an upgrade from Wells Fargo analyst Steven Cahall.
Cahall boosted NFLX stock to an “overweight” rating from its prior “equal weight” rating. For comparison, the analyst consensus for Netflix stock is a “hold” rating. That’s based on 20 “buy” ratings, 16 “hold” ratings and four “sell” ratings.
To go along with that upgrade, the Wells Fargo analyst also raised his price target for NFLX stock to $400 per share. That’s a major boost over the prior price target of $300 per share. It’s also incredibly bullish compared to the analyst consensus price target of $$318.37.
Why the Bullish Stance on NFLX Stock?
There are a few reasons behind Cahall’s recent positive stance on Netflix. That includes the company’s new subscription tier which includes advertisements. Other good news for investors is the streaming service boosting content production, as well as cracking down on password sharing.
Cahall said the following about Netflix in a note obtained by CNBC:
“NFLX is going to be a more stable grower on subscribers with the COVID digestion behind it and new arrows in the quiver from AVOD and paid sharing.”
NFLX stock is up 2.9% in pre-market trading on Friday. The stock is currently down 48.1% since the start of the year.
Investors seeking more of the most recent stock market news will want to stick around!
InvestorPlace offers up all of the latest stock news traders need to know about on Friday! That includes this morning’s biggest pre-market stock movers, as well as what’s been happening with Vinco Ventures (NASDAQ:BBIG) and more. You can check all of that out at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.