TD Cowen analysts are bullish on Netflix (NASDAQ:) earnings, citing strong subscriber growth and a thriving advertising business as key factors.
The bank expects Netflix to add 5.19 million paid subscribers in the second quarter of 2024, beating analysts’ consensus of 3.72 million. The growth is driven by paid engagement initiatives and momentum in the ad-supported video streaming (AVOD) segment.
According to a recent consumer survey by TD Cowen, Netflix remains the number one choice for living room viewing, highlighting its continued dominance in the home entertainment space.
Analysts note that they will be looking for details on AVOD levels, profit and margin trends, stressing the importance of details surrounding advertising performance during the upcoming earnings report on July 18.
Thanks to these trends, TD Cowen raised its price target on Netflix stock from $725 to $775, affirming a Buy rating. The firm also raised its long-term subscriber estimates, reflecting confidence in Netflix’s ability to sustain growth.
While YouTube is gaining momentum in the mobile space, TD Cowen believes that “Netflix’s broad catalog across multiple genres creates a lasting advantage over time.”