© Reuters. Netflix (NFLX) stock is up 135% since being added to Goldman’s Sell list in 2022
Goldman Sachs analysts upgraded Netflix (NASDAQ:) stock to Overweight from Neutral with the price target raised to $400 per share from the prior $230.
The analysts made a move to the sidelines after Netflix shares gained ~135% since Goldman downgraded the stock last June.
“NFLX continues to execute against its global password and ad tier initiatives,” they said in a note to clients.
The rating and price target update reflects “overall positive current operating performance for NFLX and continued forward positive operating momentum into 2024/2025.”
“Our prior Sell recommendation had been based on our view that NFLX would face a series of headwinds from post-pandemic subscriber growth normalization, heightened industry competitive pressure, potential pressure on subscriber gross additions from the consumer spending environment and volatile subscriber performance as it rolled out its password sharing crackdown initiatives,” analysts added.
On the other hand, Netflix has continued to execute very well while also regaining content creation momentum. Moreover, analysts note that the overall industry competition “has become more muted (especially from traditional media companies) in the past six months.”
Netflix stock is up about 0.8% in pre-market Wednesday, pushing the year-to-date gains to over 50%.
This story originally appeared on Investing
