Netflix (NFLX) Hit Queen's Gambit Should Offset Moderating Engagement - Credit Suisse

Credit Suisse analyst Douglas Mitchelson reiterated a Neutral rating and $525.00 price target on Netflix (NASDAQ: NFLX) after The Queen’s Gambit remained in the top 10 for the 7th straight week in the U.S. and hit #1 in 63 countries. The series was watched by 62m households (according to management) which suggests a larger audience than Tiger King.

The analyst believes the strong embrace of new content should offset moderating engagement per customer and app downloads. He stated "global first-time app downloads (-5% y/y 4Q QTD vs. 3Q’s -8%) suggests trends are reasonable relative to 4Q20 guidance, though the holidays remain key (last 2 weeks of 4Q totaled ~30% of net adds in recent years per NFLX data). Subscriber growth might be supported by mobile plans added to more countries and, in particular, by the more aggressive “StreamFest” promotion in India (2 days free service Dec 5-6, or when Netflix makes it available since demand blew through the capacity allotted) – outsized success might spark quality of incremental growth debates".

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 $517.39 yesterday.

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