A Netflix content deal with Former President Barack Obama would be a boon for the company, according to one Wall Street firm.
The New York Times reported on Thursday Obama is in advanced talks with Netflix to produce a series of shows that would be exclusive to the streaming giant.
GBH Insights reiterated its “highly attractive” rating for Netflix shares, citing optimism over the company’s original content initiatives.
“With media reports indicating that former President Barack Obama is in advanced negotiations with Netflix to produce a series of high profile shows, we would characterize this as a ‘home run’ deal for the company as they are aggressively looking to acquire high profile talent and original content to further feed the Netflix consumer machine,” head of technology research Daniel Ives wrote in a note to clients Friday.
Ives reaffirmed his $375 price target for Netflix shares, representing 18 percent upside to Thursday’s close.
The analyst believes Netflix is an attractive distribution platform for Obama due its nearly 120 million subscribers. He said the company will spend $8 billion for content in 2018 with 30 percent to 35 percent of the budget set for original content.
“We believe Netflix remains in a unique position of strength to grow its content and distribution tentacles over the next 12 to 18 months and thus further build out its massive content and streaming footprint with a potential Obama deal the latest ‘feather in its cap,'” he wrote.
Netflix shares are up 1.7 percent in Friday’s premarket session after the report.
