Netflix earns 2 upgrades after Q4 beat, subscriber surge: 4 big analyst picks

Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Netflix, Verizon Communications , Avis Budget Group, and Heico.

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Netflix earns two upgrades following Q4 results

Netflix (NASDAQ:NFLX) received two upgrades after announcing its Q4 results. Despite missing the consensus EPS estimates for Q4, the company exceeded revenue expectations and notably surpassed predicted paid subscriber additions, achieving 13.1 million compared to the anticipated 8.91M. Furthermore, Netflix's Q1 EPS guidance exceeded consensus. As a result, shares jumped more than 10% yesterday.

DZ Bank raised its rating for Netflix to Buy from Hold, setting a new price target of $600.00, up from $495.00.

Meanwhile, Macquarie upgraded Netflix to Outperform from Neutral, increasing its price target to $595.00 from $410.00. Macquarie's analysis highlighted the successful implementation and growth potential of Netflix's ad tier and password sharing initiatives.

Although initially cautious due to expected delays in ad revenue and potential impacts on average revenue per member, Macquarie acknowledged Netflix's strong performance. “Its ad tier subs are largely incremental, not switching down from paid plans, and after adding 29.5m subs in '23, Netflix enters '24 expecting to now grow ARM,” commented the firm.

Verizon Communications raised to Outperform

Daiwa Securities upgraded Verizon Communications (NYSE:VZ) to Outperform from Neutral, raising their price target to $47.00 from the previous $36.00, as reported in real-time on InvestingPro.

This upgrade follows Verizon's impressive Q4 results, signaling a positive turnaround for the company. The analysts commented on the strength of Verizon's core operations, particularly highlighting the significant net additions in both consumer postpaid phones and total broadband, as well as the encouraging outlook for 2024.

They noted that Q4 results marked the third consecutive quarter of growth in total postpaid phone net additions in 2023, along with a robust increase in consumer net additions, exceeding expectations.

Two more upgrades

Deutsche Bank upgraded Avis Budget Group (NASDAQ:CAR) to Buy from Hold with a price target of $248.00 (from $234.00).

BofA Securities upgraded Heico (NYSE:HEI) to Buy from Neutra with a price target of $220.00.

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