Netflix Inc (NASDAQ:NFLX, ETR:NFC) may not have won big at the Oscars on Sunday but analysts believe shareholders could soon be awarded some share price gains as the streaming service bolsters its revenues through growing membership numbers.
Aptly named Oppenheimer, the US broker, has upped its share price target from US$615 to US$725 as it believes Neftlix’s average revenue per member (ARM) will ramp up in 2024.
Netflix is expected to experience a 4% year-on-year rise in ARM now that it has enacted price increases in the US, UK and France, Oppenheimer’s estimates reveal.
While the value generated from Netflix’s ARM growth has largely been accounted for by the market, the US investment bank thinks “there is a high likelihood of upside” to Wall Street estimates.
The current market consensus predicts a substantial slowdown in paid sharing and ad-tier subscriptions, but Oppenheimer noted the lack of focus on Neftlix’s “bullish engagement data”.
Oppenheimer predicts the streaming giant can beat Wall Street’s subscriber growth estimates by an extra 17 million users within the next three years, capturing 60% of 100 million paid sharing opportunities.
Netflix shares are flat on Monday, trading at around US$604, up close to 30% since the start of 2024.
Last week it was revealed Netflix would be streaming Mike Tyson's upcoming fight with social media influencer Jake Paul, highlighting its broadening from only movies and TV.
The bout will take place on July 20 and will see the 57-year-old former heavyweight world champion take on the 27-year-old former Disney star.