Why Two Banks Are Bullish on Netflix (NFLX)

Investment bank Evercore and JPMorgan recently issued bullish notes on Netflix (NFLX), Schwab Network reported today.

Evercore Says Its Surveys Were Positive for NFLX

After conducting surveys in the U.S. and Japan, investment bank Evercore reported that NFLX has “a large runway for international growth” and an “extremely strong and growing value proposition,” Schwab reported.

Photo by Thibault Penin on Unsplash

What’s more, the company still has less than 10% of its total available market (TAM), along with a top-notch management team, a “very solid record of innovation,” and “ongoing pricing power,” according to Evercore.

The investment bank kept a $1,100 price target and an Overweight rating on the shares.

JPMorgan Was Also Bullish on NFLX

Last week, the large bank predicted that NFLX would prove to be “relatively defensive” in the face of negative macro developments. Further, it has “strong pricing power” and “strong content,” while price increases have boosted its revenue, the bank stated.

Finally, JPMorgan expects NFLX to stream more live events, both in the U.S. and overseas.

The Recent Price Action of NFLX

In the last month, the shares have dropped 5%, while they have climbed 3% in the last three months.

While we acknowledge the potential of NFLX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as NFLX but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey