Netflix (NFLX) Surveys Point to Stable Low Double Digit Churn, RBC Capital Reiterates $630 PT

RBC Capital analyst Mark Mahaney reiterated an Outperform rating and $630.00 price target on Netflix (NASDAQ: NFLX) after conducting surveys of more than 3500 consumers in the US, France and Germany. The analyst found that penetration in the US and France declined slightly while growing in Germany. Satisfaction slipped slightly in all three geographies but despite these two issues, churn remains low with low double digit subscribers in each geography "Extremely/Very Likely to cancel".

The analyst sees this as a result of unique content combined with Netflix ability to use algorithms to promote internally generated content. The analyst stated "After making Joe Exotic a household name, Netflix is single handedly making chess cool again… The Queen’s Gambit is now Netflix’s biggest limited scripted series with 62MM household viewings in the first 28 days, and making chess sets the #1 best seller on eBay UK this year! We believe a significant part of what turns these relatively good shows into global sensations is what we call the Netflix Factor – NFLX’s unique ability to leverage its recommendation algorithms and massive platform to amplify the impact of its content, which makes Netflix a uniquely attractive platform for the content producers, a necessity for FOMO consumers, and potentially opens doors to merchandising opportunities, extending future upside potential to NFLX’s profitability."

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 $523.23 yesterday.

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