- The price target of Netflix Inc (NASDAQ: NFLX) has been increased from $630 to $643 by Piper Sandler. These are the details.
The price target of Netflix Inc (NASDAQ: NFLX) has been increased from $630 to $643 by Piper Sandler. Piper Sandler analyst Yung Kim is also maintaining an Overweight rating on the company shares. What triggered the stock price increase?
Earlier this week, Netflix announced a slight increase in U.S. subscription fees. The fee for the standard account has been increased by $1 to $14. And the fee increase for the Premium tier has been increased by $2 to $18. Kim also believes that Netflix has room to grow for increasing the standard plan even more.
Netflix last increased the premium tier from $13.99 to $15.99 back in January 2019. And back then, the cost of the basic plan was increased from $7.99 to $8.99.
The mid-tier standard plan allows 1080p quality streaming and supports streaming on two screens. To watch content in 4K and stream content on four screens, Netflix requires the more expensive premium plan.
The price changes are effective immediately for new customers. Current customers will see the price change applied over the next couple of months. A 30-day warning will be issued to customers before the price hike is applied.
Disclosure: I have a small NFLX position in my stock portfolio