Netflix’s Strong Q1 Results Show ‘Great Resiliency in Tough Times,’ Jefferies Says

After Netflix (NFLX) delivered first-quarter earnings that topped Wall Street’s expectations, several analysts lauded the company’s ability to thrive amid economic uncertainty. 

Bank of America analysts said the streaming giant has shown “sustainable growth drivers” that could make the stock a strong defensive choice for investors. On the company’s earnings call, co-CEO Greg Peters said Netflix “has been generally quite resilient” during tougher economic times.

Netflix attributed its better-than-expected results in part to higher subscription and ad revenues, and Peters said the company expects to double its advertising revenue this year, as the company rolls out its ad tech suite. Jefferies analysts said Netflix “remains a top pick as the ad tier scales, price hikes flow through, and expectations remain achievable.”

Ahead of Thursday’s earnings report, Netflix executives reportedly said their goal is to double the company’s $39 billion in revenue last year by 2030. However, co-CEO Ted Sarandos cautioned analysts not to take it as an official forecast. 

BofA and Jefferies maintained bullish ratings and price targets of $1,175 and $1,200, respectively. KeyBanc analysts kept a target of $1,000, and Needham reiterated $1,126. Those estimates imply as much as 23% upside from Thursday’s closing price. (U.S. markets are closed Friday in observance of Good Friday).