Will Netflix Stock Be a Market Leader in 2023?
It's been a rough year for Netflix (NASDAQ: NFLX) investors. Things could get better in 2023. The world's leading premium streaming video service was on the receiving end of a rare double analyst upgrade on Thursday. Kenneth Leon at CFRA is boosting his rating on Netflix stock from sell to buy. He's also jacking up his price target from $225 to $310.
Leon believes the scalable moat that Netflix has amassed in streaming over the past 15 years will be difficult to cross. Netflix is a rare profitable player in the realm of premium streaming video. It will be hard for deficit-riddled rivals to catch up in this climate where investors aren't patient with red ink.
Netflix continues to have its finger on the pulse of trending shows and films. It's a hit factory, and the success of its content catalog should keep churn in check. The recently introduced cheaper ad-supported tier and a crackdown on account sharing should keep subscriber counts growing in the near future. With the stock losing more than half of its value -- down 54% in 2022 with two trading days to go -- it's encouraging to see that the fundamentals are at least moving in the right direction.
Source Fool.com
