Now Streaming: Analysts boost Netflix targets after Q1 beat

PLAYING THIS WEEKEND: Among this weekend’s highly-anticipated caller streaming contented is the archetypal fewer episodes of “Andor,” a play bid acceptable successful the “Star Wars” universe, connected Disney+ (DIS). Meanwhile, Netflix (NFLX) subscribers tin drawback the 5th play of play bid “You,” arsenic good arsenic neo-noir enactment thriller movie “Havoc,” starring Tom Hardy and Forest Whitaker. Additionally, Amazon Prime Video (AMZN) users tin cheque retired caller comedy-drama bid “Etoile,” which is created by Amy Sherman-Palladino and Daniel Palladino, who besides made “Gilmore Girls” and “The Marvelous Mrs. Maisel.”

NETFLIX RESULTS: Last week, Netflix reported better-than-expected Q1 results, with gross and operating income rising 13% and 27% year-over-year, respectively. Looking ahead, the institution provided for Q2 net per stock and gross supra statement estimates, and reiterated its FY25 gross outlook, adding that it volition astir treble advertizing gross successful 2025.

Following the report, astatine slightest 16 antithetic securities analysts raised their terms targets connected Netflix shares, Barclays said the banal has travel to beryllium seen arsenic a “defensive long” successful the existent macro backdrop and its Q1 results and Q2 guidance “are apt to reenforce this thesis further.” The steadfast added that portion the company’s gross was astir successful enactment with consensus, borderline for the 4th and borderline guidance for Q2 were some amended than estimates. Meanwhile, Morgan Stanley besides raised its terms people connected Netflix, saying the concern is “predictable” and that predictability, combined with a concern that should beryllium comparatively resilient successful a tougher macro, enactment an Overweight view.

Additionally, Phillip Securities upgraded Netflix to Neutral from Reduce with a terms people of $950, up from $870, station the Q1 report. A “strong” contented pipeline and the enlargement of its advertizing supported tier presumption volition alteration Netflix to navigate imaginable economical slowdowns, the expert told investors successful a probe note. The steadfast believes the stock’s existent valuation suggests constricted near-term upside, but cites Netflix’s quality to withstand a recession for the upgrade.

COMCAST RESULTS: This week, Comcast (CMCSA) reported upbeat Q1 net and revenue, with Peacock gross expanding 16% to $1.2B. “We had beardown fiscal results successful the archetypal quarter, increasing Adjusted EPS mid-single digits and generating $5.4 cardinal of escaped currency travel portion investing successful our six maturation businesses and returning $3.2 cardinal to shareholders,” said Brian Roberts, president and CEO of Comcast Corporation. “Our connectivity businesses generated 4% gross growth, fueling enlargement successful C&P EBITDA margins to 41.4%. We besides achieved our highest wireless enactment additions successful 2 years and person outperformed successful Business Services with mid-single digit gross and EBITDA maturation and margins of astir 57%. At the aforesaid time, momentum successful streaming continues with 21% maturation successful Media EBITDA; and Theme Parks stay connected an unthinkable maturation trajectory. We could not beryllium much excited for the expansive opening of Epic Universe successful Orlando adjacent period and our plans to bring a caller world-class taxable parkland to the UK. With our important escaped currency travel generation, disciplined attack to superior allocation and the spot of our diversified businesses, I americium assured that we are well-positioned to navigate an evolving situation and seizure aboriginal opportunities.”