Analyst Sees 30% Upside for Netflix, Strong Holiday Subscriber Growth

Analyst firm Cowen just issued a preview of Netflix (NASDAQ: NFLX) earnings for the fourth quarter of 2020. Cowen analyst John Blackledge found a lot to like in his Netflix research and ended up boosting his one-year target price for the stock.

Blackledge reiterated his outperform rating on Netflix shares, which means he expects the stock to beat the market in the short term. His target price for the stock was boosted from $625 to $650 per share, based on a rosier analysis of Netflix's long-term cash flows. That's 30% above Wednesday's closing price.

Cowen performed an in-house survey of 2,500 American consumers. Fifty-seven percent of respondents said they would be willing to pay more for Netflix video-streaming services, up from 47% in the third-quarter survey. Given that Netflix also implemented its largest-ever price increase for domestic subscribers during the fourth quarter, Blackledge said that the survey suggests strong pricing power in the company's largest and most mature market.

Source Fool.com