Netflix Inc. (NASDAQ:NFLX) shares are rising Tuesday. Wolfe Research raised its price target on the stock and argued that recent concerns about viewer engagement are overdone. Here’s what you need to know.
Netflix stock is showing upward movement. Why is NFLX stock advancing?
Wolfe Research Says Engagement Concerns Are Overblown
Wolfe Research kept its Outperform rating on Netflix and lifted its price target to $95 from $84, a move that puts the new target close to 19% above where shares closed Monday.
Analyst Peter Supino said combing through millions of data points tied to how people actually watched Netflix content led the firm to a specific conclusion: the timing of new releases, not any underlying erosion in the business, best explains the softer subscriber and engagement figures from the second quarter. He said the lineup of shows and films set for the third quarter looks more promising, and that Netflix’s expanding live programming push appears to be gaining traction, CNBC reported.
