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Top Analyst Comments on Netflix’s (NFLX) Partnership with Telltale


According to a TechRadar report citing anonymous sources, Netflix (NASDAQ:NFLX) and Telltale Games are teaming up to introduce a series of interactive narratives to the streaming service. Under the deal, Netflix will launch a game based on its popular “Stranger Things” original series, and it will roll out another basic interactive game — “Minecraft: Story Mode,” this fall.

Oppenheimer analyst Jason Helfstein commented, “We note Telltale’s specialty is making “episodic adventure” video games, similar to “choose your own adventure” books, rather than traditional video game genres like Role Playing Games, First Person Shooters, Platformers, etc. As such, we don’t believe this partnership preludes a larger entry into the gaming space. We are positive on the move, however, because we see Netflix leveraging its existing story-telling competency with more interactive formats, potentially creating exclusive differentiated experiences to strengthen its competitive moat. Over time we believe this format of entertainment would compete against time spent with movies and television shows.”

Helfstein rates NFLX stock an Outperform, while no price target was provided.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Jason Helfstein has a yearly average return of 20.6% and a 71% success rate. Helfstein has a 47.8% average return when recommending NFLX, and is ranked #36 out of 4829 analysts.

Cautious optimism circles this streaming giant, as TipRanks analytics exhibit NFLX as a Buy. Out of 32 analysts polled in the last 3 months, 19 are bullish on Netflix stock, while 12 remain sidelined. With a return potential of nearly 5%, the stock’s consensus target price stands at $346.41.