Street calls of the week

Netflix

What happened? On Monday, Loop Capital downgraded Netflix (NASDAQ:NFLX) to Hold with a $950 price target.

*TLDR: Netflix is poised for growth; valuation concerns persist.

What’s the full story? Loop summarized that Netflix is exceptionally well-positioned, projecting over 30M new subscribers this year, second only to the 2020 pandemic surge. Revenue returned to mid-teen growth, and operating margins are expected to rise by 600bps in 2024, with management consistently upgrading guidance over the past four quarters. A significant Q4 subscriber increase was anticipated due to high-profile events like the Paul/Tyson match and NFL Christmas games featuring Beyoncé.

Co-CEO Ted Sarandos expressed strong optimism about the 2025 content lineup, calling it possibly their strongest since starting original programming. Despite not raising its most popular U.S. pricing tier in almost three years, Netflix remains competitively priced. However, due to historically high valuation multiples, Loop cut Netflix to Hold noting shares are near fair value.

Hold at Loop Capital means “The stock is expected to perform in line with the market or its peer stocks over the next 12 months.“

Tesla

What happened? On Tuesday, Mizuho (NYSE:MFG) upgraded Tesla Inc (NASDAQ:TSLA) to Outperform with a $515 price target.

*TLDR: Mizuho upgrades Tesla, sees significant valuation upside. Price target raised to $515.

What’s the full story? Mizuho’s upgrade comes on the wave of idiosyncratic tailwinds over the coming four years. The firm notes that loosening Autonomous Driving regulatory frameworks provide more FSD/Robotaxi valuation upside, the new Trump administration policies position Tesla better with a lower EV cost structure compared to peers, and TSLA is set to outgrow global light vehicle production with a more profitable EV roadmap featuring the low-cost Model Q/Cybercab in 2026-2027.