Should I buy Netflix shares after a positive view from Wedbush?

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Netflix,Inc. (NASDAQ: NFLX) shares have weakened from $609 to $162 since the beginning of January 2022, and the current price stands at $186.

Investment firm Wedbush has a positive view of the shares of this company, and it reported that Netflix has the potential to beat second-quarter expectations.


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Investment firm Wedbush has a positive view

Investment firm Wedbush upgraded shares of Netflix this Monday and reported that Netflix has the potential to beat second-quarter expectations.

Michael Pachter, an analyst from Wedbush, assigned a price target of $280 on Netflix shares which imply a more than 40% upside compared with the current price.

Netflix announced two substantial changes to its business model recently, cracking down on password sharing and introducing an ad-supported subscription. According to Wedbush, these changes are a good idea, and according to estimates, Netflix’s massive content lineup in 2022 could also drive subscriber growth.

Investment firm Wedbush said that Netflix holds a nearly insurmountable competitive advantage over rivals, and the current share price could be a good entry-level for long-term investors. Analyst Michael Pachter added:

While it is possible that the company will once again issue downbeat guidance for Q3, we think that the staggered release date for Stranger Things will reduce churn, and once again, we think that Netflix is positioned to grow.

On the other side, the uncertainty because of the Russian-Ukrainian war, high inflation, and the rising risks of the recession remain investors’ focus.

Netflix is a stable company with a bright future, but investors should consider that if the U.S. stock market enters a more significant correction phase, the shares of Netflix could be at lower levels.

$150 represents the current support level

Netflix shares continue to trade near 2022 lows, but the current price could be a good entry-level for long-term investors.

Wedbush’s price target implies more than 40% upside on Netflix shares compared with the current price, and if the company posts strong second-quarter earnings results, the share price will probably be above the current levels.

Data source: tradingview.com

If the price jumps above $250, it will signal to trade Netflix shares, and the next target could be $300.

On the other side, if the price falls below the current support that stands at $50, it would be a “sell” signal, and we have the open way to $130.

Summary

Netflix shares have weakened more than 65% since the beginning of January 2022, but according to investment firm Wedbush, the current price could be a good entry-level for long-term investors. Michael Pachter, an analyst from Wedbush, assigned a price target of $280 on Netflix shares which imply a more than 40% upside compared with the current price.

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