- Analysts re-rated Netflix Inc (NASDAQ:NFLX) ahead of its Q1 results.
- Barclays analyst Kannan Venkateshwar lowered the price target on Netflix to $380 from $425 (8.4% upside) and kept an Equal Weight rating on the shares.
- Netflix's Q1 growth may not be very different from its weak guidance.
- Also Read: Another Analyst Gets Cautious Ahead Of Netflix's Q1 After Baird, Stifel
- Netflix's accounting treatment of Russia, given the shutdown of operations there, may further affect the global numbers.
- Netflix appears to be on a path to 4 million subscribers, better than company guidance based on the average predicted value across various short and long-term models, but still weak in the absolute for a Q1.
- Other than Netflix, the only service where trends stand out is HBO Max, which appears to have seen strong engagement throughout the quarter.
- The price target cut reflects a weak near-term growth outlook and an ongoing shift away from revenue multiples among investors.
- Piper Sandler analyst Thomas Champion reiterated an Overweight rating on Netflix with a $562 price target (60.3% upside) ahead of the company's Q1 results.
- The shares are at "trough multiples" despite recent success with Squid Game and the return of critical shows like Stranger Things and The Crown.
- The analyst's survey work suggests an opportunity for Netflix for an advertising-supported offering and more restrictive password-sharing policies.
- BMO Capital analyst Daniel Salmon maintained Netflix with an Outperform and lowered the price target from $650 to $640 (82.6% upside).
- Price Action: NFLX shares traded higher by 1.23% at $348.33 on the last check Wednesday.
