Netflix (NFLX) Returns Should Remain As Strong As Ever Despite Disney - MKM

MKM Partners analyst, Rob Sanderson, thinks that fundamentals and earnings potential remain as strong as ever despite worst performing FANG stock over the past 1-mo, 3-mo and 6-mo timeframes. He perceives this as macro-related weakness which is creating an excellent buying opportunity.

The analyst stated "With the non-renewal of Disney movie output, that company’s intention to launch a competing service and pending acquisition of Fox, investors are again debating whether access to content is a meaningful risk for NFLX". "We expect evolving strategies and episodic friction points with media incumbents, but do not think rights holders and production companies can ignore the largest and fastest growing wallet. We think the recent renewal of Friends with exclusive rights from Warner is an example".

Buy Netflix (NASDAQ: NFLX) price target of $415.00

For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.

Shares of Netflix closed at $267.22 yesterday.

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