BMO Capital Raises Netflix (NFLX) ARPU on Price Increases, Pullback is Buying Opportunity

BMO Capital analyst Daniel Salmon reiterated an Outperform rating and $700.00 price target on Netflix (NASDAQ: NFLX) raising UCAN ARPU starting in 1Q22 and then through 2030 after last week’s price increase across plans.

The analyst stated "After waning last quarter, our conviction is higher after this pullback. We think subscriber beats are still the most important driver, and we remain above consensus in APAC where we think the mobile-first video game strategy could be impactful first. While the price cut in India re-enforced that emerging markets ARPU remains the most elusive input in the model, increases in the U.S., Canada and South Korea show continued pricing power. This supports the expanding FCF profile, on which more investors are focused after high-multiple businesses have been re-valued."

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 $525.69 yesterday.

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