Schaeffer's Top Stock Picks for '25

Analysts See a Lot More Upside for Netflix Stock

The equity is on the rise this morning

Digital Content Manager
Dec 9, 2022 at 9:33 AM
facebook X logo linkedin


Netflix inc (NASDAQ:NFLX) stock is getting a boost this morning, last seen up 2.1% at $316.69, following bull notes from at least two brokerages.

Wells Fargo upgraded the stock to "overweight" from "equal weight," and lifted its price target to $400 from $300 -- marking its second-highest target price among analysts. The analyst sees Netflix's new ad-supported tier driving roughly 23 million incremental subscriber ads by 2025's end, adding that churn could improve next year. "NFLX is using every arrow in the quiver," said Wells Fargo, as it works to bounce back from a tumultuous year.

Meanwhile, Cowen named Netflix stock a "best idea" for 2023. The brokerage firm also lifted its price target to a Street high of $405 from $340, noting new monetization levers and the lower price ad tier as key drivers for shares. 

There's plenty of room for a shift in analyst sentiment. Coming into today, 14 brokerages called the stock a "strong buy," compared to 15 "hold," and three "strong sell" ratings. What's more, the 12-month consensus price target of $292.72 is a 7.7% discount to last night's close. 

An unwinding of pessimism among short-term options traders could also push NFLX higher. The equity sports a Schaeffer's put/call open interest ratio (SOIR) of 1.15, which sits in the slightly elevated 67th percentile of its annual range. In other words, these traders are much more put-biased than usual. 

Joining these traders doesn't seem like a bad idea, either, as NFLX options can be had at a relative bargain right now. The stock's Schaeffer's Volatility Index (SVI) of 55% stands higher than just 28% of readings from the past year. In other words, traders are pricing in relatively low volatility expectations on Netflix stock at the moment. What's more, the equity sports a Schaeffer's Volatility Scorecard (SVS) of 87 out of 100. In other words, the stock tends to outperform said expectations -- a great thing for buyers. 

Another reason to bet on Netflix: the stock has found support at a confluence of trendlines, including its 40-day moving average. In fact, the 40-day captured two of the security's latest pullbacks before launching the stock even higher. The 20-day moving average is also a trendline to watch moving forward. Just above, investors should keep a close eye on the $330 level, which served as a floor for the stock ahead of its mid-April bear gap, and acted as a ceiling for the stock's latest rally earlier this month. 

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));