Bernstein SocGen Group Reiterates Outperform Rating on Netflix (NFLX), 'What's broken?'

Bernstein SocGen Group analyst Laurent Yoon reiterated an Outperform rating and $1,390.00 price target on Netflix (NASDAQ: NFLX).

The analyst commented: "Netflix dropped 10% following their Q3 print. For a company that just delivered 17% YoY revenue growth (meeting expectations), a 34% EBIT margin (ex-Brazil impact) in Q3, and perhaps the best content lineup ever for Q4, the market reaction is a head-scratcher. Since Covid, Netflix has experienced 7 single-day declines of 8% or more [Exhibit 1], triggered by factors ranging from disappointing guidance to concerns over slowing subscriber growth. Recoveries from these steep drops have typically been short-lived as Netflix’s strengthening fundamentals - P x Q x M(argins) - have consistently guided the stock back on a positive slope over the following weeks or, at times, months [Exhibit 2]. History has rewarded patience, and we anticipate the same this time. "

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 $1116.37 yesterday.

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