Is Netflix, Inc. (NASDAQ:NFLX) about to nap a former president? Rumor has it that once President Barack Obama is far down the line in negotiations with the video streaming content king for a producing a new series.
GBH Insights analyst Daniel Ives sings the praises of Netflix, a giant that just won its first Oscar this week, calling this a “home run” kind of a deal, should rumors spring to life.
In reaction, the analyst reiterates a Highly Attractive rating on NFLX stock with a price target of $375, which implies a close to 17% upside from current levels. (To watch Ives’ track record, click here)
Keep in mind, this tech leader is “aggressively looking to acquire high profile talent and original content to further feed the Netflix consumer machine,” notes Ives, making a bullish case: “As one of the most high profile individuals globally, a steaming platform with ~120 million consumers worldwide and growing would be a unparalleled distribution platform for Obama, which could start out with a few shows and potentially lead to other deals down the road. With Netflix planning to spend up to $8 billion on content this year with 30%-35% of this dedicated towards original content with a long term goal of reaching 50%, content remains the golden key to success for Netflix going forward.”
As far as Ives is concerned, Netflix’s credibility is rising, and should this high-profile project come to light, the giant’s competitive moat is in solid standing- with compelling “franchise appeal.” Calling this “potential Obama deal the latest ‘feather in its cap,'” even surveying a competitive original content arena, Ives is full bullish steam ahead on Netflix.
TipRanks recognizes that Netflix is a stock magnetizing a great deal of optimism on the Street. Consider that out of 33 analysts polled in the last 3 months, 22 are bullish on NFLX’s prospects, 10 remain sidelined, while 1 is bearish on the stock. However, is this stock overvalued or undervalued based on these analysts’ expectations? With a loss potential of 11%, the stock’s consensus target price stands at $281.84, indicating some caution looms over shares.