Shares of Netflix Inc. spiked up to a 17-month high before paring gains, after the most bearish analyst had a change of heart, as the streaming video giant’s management has executed the crackdown on password sharing better than expected.
Analyst Eric Sheridan at Goldman Sachs raised his rating on Netflix’s stock NFLX to neutral, after being at sell for the past 13 months. He also boosted his price target by 74%, to $400 from $230. Also read: Netflix’s stock looks juicy ahead of earnings, says Citi — and not because of password sharing.
“In short, [Netflix management] has executed its password-sharing initiatives in excess of our prior assumptions, has regained content creation momentum in a manner that has muted any post-pandemic growth headwinds and overall industry competition has become more muted in the past six months,” Sheridan wrote in a note to clients.