Netflix Q1 Subscriber Estimates Too High? Analyst Cautions On Elevated Expectations, 'How Big Is The Beat' Mentality
Portfolio Pulse from Chris Katje
Piper Sandler analyst Matt Farrell maintains a Neutral rating on Netflix Inc (NASDAQ:NFLX) but raises the price target from $550 to $600 ahead of Q1 earnings report on April 18. Elevated expectations follow a strong Q4, with focus on subscriber growth, advertising business scale, and margin expansion. Netflix's leadership in streaming is acknowledged, yet Farrell suggests a pullback might offer a better entry point.
April 12, 2024 | 8:20 pm
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Piper Sandler analyst Matt Farrell maintains a Neutral rating on Netflix but raises the price target from $550 to $600, highlighting high expectations for Q1 earnings, especially in subscriber growth and advertising business scale.
The adjustment in price target by Piper Sandler reflects optimism about Netflix's performance but maintains a Neutral stance due to high market expectations. This suggests a cautious outlook on immediate stock movement post-Q1 earnings, balancing optimism with the current high expectations.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100