Pivotal boosts Netflix price target to Street-high $490 from $425

Pivotal Research analyst Jeffrey Wlodarczak raised the firm’s price target on Netflix to $490 from $425 and keeps a Buy rating on the shares. The analyst points out that the new target is high on the Street. The unfortunate COVID-19 pandemic is cementing Netflix’s global direct-to-consumer dominance, partly driven by the incremental content spend that is enabled by the company’s “massive and growing” subscriber base, Wlodarczak tells investors in a research note. The analyst increased Netflix global subscriber forecasts “materially” on likely higher gross subscribers and lower subscriber churn boosted by global consumer “stay at home” orders around the virus.