Netflix (NFLX) Investors Should Focus On Improving P&L Quality, Reit Outperform At Macquarie

Macquarie analyst Tim Nollen reiterated an Outperform rating and $375.00 price target on Netflix (NASDAQ: NFLX) after the company beat on rev and EPS but net adds of 2.7m were well below management's 5m guidance. The company attributed it to content mix combined with sensitivity to price increases.

The anlayst stated "Mgmt noted that Q3 has already seen a reacceleration in sub adds, with churn
rates falling again as the price hikes have been almost all implemented, and with a wealth of content coming on stream throughout H2. Mgmt thus reiterated guidance of an increase in sub adds in 2019 vs the 28m added last year, and targets for 2019 op margin of 13% and FCF of ($3.5bn), to improve in 2020". "We think investors should focus more on the improving P&L quality".

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 $324.40 yesterday.

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