(News Bulletin 247) – Wedbush retains its Outperformance rating on the Netflix stock and its price target of $410.

Netflix is ​​on Wedbush’s list of best ideas because “the business can generate significantly more free cash flow than its forecasts suggest,” noted the analyst.

“Netflix has hit the right formula with its overall content to balance costs and drive growing profitability, while its ad support tier and crackdown on password sharing should boost cash generation,” Wedbush continued.

Based on its expectation of re-accelerating subscriber growth and improving ARPU, Wedbush maintains its price target of $410, ‘reflecting a P/E multiple of 25x on our estimate of the EPS of 2025’, ends the analyst.

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