Jefferies Affirms Buy Rating on Netflix, Inc. (NFLX) on Warner Bros. Discovery Acquisition Prospects

Netflix Inc. (NASDAQ:NFLX) is one of the best forever stocks to buy according to hedge funds. On December 17, Jefferies reiterated a Buy rating on Netflix Inc. (NASDAQ:NFLX) and settled on a $134 price target. The bullish stance follows reports that the company is contemplating acquiring Warner Bros. Discovery.

Warner Bros has already rejected a hostile takeover from Paramount, as it prefers to sell its studios and streaming assets to Netflix. According to Jefferies, Warner Bros’ preference averts the risk of a bidding war, which would benefit the streaming giant. Likewise, the research firm expects the acquisition to trigger healthy organic growth in addition to synergies.

Netflix has already secured a $72 billion equity deal for Warner Bros TV film studios and streaming assets. Similarly, it has reiterated that theatrical releases of Warner Bros. movies are an integral part of the business and legacy.

“We haven’t prioritized theatrical in the past because that wasn’t our business at Netflix. When this deal closes, we will be in that business,” the letter said, adding that a hostile bid from Paramount Skydance was “entirely expected.

Meanwhile, Netflix has opened a second Netflix House Location at Galleria Dallas. The new facility offers fans an immersive entertainment venue spanning 100,000 square feet. The environment will allow visitors to explore environments based on Netflix shows, including “Stranger Things,” “Squid Game,” and “Bridgerton.

Netflix, Inc. (NASDAQ:NFLX) is a global entertainment company offering a subscription-based streaming service for TV shows, movies, documentaries, and games. It delivers content on demand across many devices, and also produces its own original content.

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Disclosure: None. This article is originally published at Insider Monkey.