'Attractively Valued': Analyst Bets Big On Netflix's Multi-Year Growth Run
'Attractively Valued': Analyst Bets Big On Netflix's Multi-Year Growth Run
Anusuya LahiriTue, April 21, 2026 at 3:31 PM UTC
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Guggenheim’s Michael Morris says Netflix Inc. remains a Buy despite a guidance miss, citing strong long-term growth and valuation support.
Valuation And Expectations Drive Near-Term Reaction
Michael Morris told CNBC last Friday that the stock remains attractively valued based on its multi-year growth potential.
He explained the recent pullback reflects elevated expectations, with over 80% of investors anticipating a margin guidance increase that did not happen.
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While he understood the reaction after the rally tied to the Warner Bros. Discovery, Inc deal news, he stressed that the long-term story remained intact and included additional “option value” not yet reflected in the share price.
Long-Term Growth Targets Still Intact
He said Netflix continues to track toward its longer-term goals, referencing previously outlined five-year ambitions.
Morris described the latest quarter as a “beat and maintain,” supporting expectations for strong double-digit revenue growth, high-teens operating profit growth, and more than 20% earnings growth through the end of the decade.
He added that long-term investors are likely to stay confident in the company’s ability to compound growth.
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Leadership Transition And Strategy Evolution
Morris acknowledged that Reed Hastings stepping away may weigh on short-term sentiment.
However, he points to continued leadership under Ted Sarandos and Greg Peters as a stabilizing factor. He also noted Netflix’s evolving strategy—including advertising and potential acquisitions—adding that recent experience has strengthened its M&A capabilities, even if no major deals are currently expected.
Image via Shutterstock
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