UBS recommends buying Netflix stock for growth opportunities in sports and advertising

adcast the 2027 and 2031 FIFA Women’s World Cups. This marks the company’s first complete rights acquisition for a major sports event, expected to enhance the profile of women’s football and provide comprehensive coverage to fans.
On the financial front, UBS has updated its outlook on Netflix, raising its price target from $825.00 to $1,040.00, while maintaining a Buy rating on the stock. The firm anticipates a 12.3% three-year compound annual growth rate in revenue and a 24% CAGR in operating income through 2027.
However, Loop Capital has downgraded Netflix from Buy to Hold, reflecting the belief that factors previously giving Netflix a competitive edge have now been largely incorporated into the stock value. In contrast, Oppenheimer maintains an Outperform rating on Netflix, citing the potential for higher monetization and subscriber estimates as the company demonstrates its capacity to host live events.

Exciting news for Netflix investors! UBS analyst recently reaffirmed a Buy rating on Netflix stock with a price target of $1,040.00. Netflix shares have seen an impressive 86.4% return year-to-date and are trading near their 52-week high of $941.75. The streaming giant is now valued at around $388 billion and holds a solid “GREAT” financial health score.

The positive rating from UBS comes on the heels of Netflix’s successful broadcasting of NFL Christmas Day games, which drew an average of 24 million viewers in the U.S. That’s not far off from the 28 million viewers that traditional networks like ABC, CBS, and Fox attracted for their Christmas telecasts last year. Netflix’s numbers also outperformed Prime Video’s Thursday Night Football’s viewership of about 13 million this season, signaling a strong showing for the streaming platform.

UBS analyst believes that while Netflix’s viewership may not have surpassed traditional broadcasts yet, the company is well-positioned to secure more sports rights in the future. With recent acquisitions like the Women’s World Cup rights and a massive global subscriber base of over 280 million users (including 80 million in the U.S.), Netflix has a strong foothold in the market. This substantial user base easily surpasses the roughly 70 million linear TV subscribers, who are decreasing by about 8% annually.

Looking ahead, Netflix’s expanding reach and ability to offer popular sports content could pave the way for future price increases and enhanced advertising opportunities. UBS analyst’s Buy rating and price target reflect confidence in Netflix’s strategic direction and growth potential in the competitive streaming landscape.

In other news, Netflix has secured exclusive rights to broadcast the 2027 and 2031 FIFA Women’s World Cups in the U.S., marking a significant move for the company. On the financial side, UBS has raised its price target for Netflix and anticipates solid revenue and operating income growth through 2027.

While some analysts, like Loop Capital, have downgraded Netflix, others like Oppenheimer remain optimistic about the company’s prospects. With a focus on hosting live events and potential for higher monetization, Netflix continues to be a key player in the streaming industry.