Netflix (NFLX) PT Lowered to $555 at Guggenheim

Guggenheim analyst Michael Morris lowered the price target on Netflix (NASDAQ: NFLX) to $555.00 (from $720.00) while maintaining a Buy rating following results and weak subscriber guidance.

The analyst commented, "Well-below consensus 1Q22 member add guidance (2.5mm versus preconsensus 5.9mm) headlined a relatively in-line 4Q21 earnings report on both member adds and financials. Given that 4Q21 was the company’s largest ever cash programming spend quarter (yielding a corresponding largest ever content lineup), we believe investors are disappointed with an in-line result and apparent lack of member growth follow-through going forward. While our 1Q net member add estimate is modestly above guidance (3.0mm) and despite some discrete detailed growth headwinds (UCAN price increase, late quarter content release weighting, weaker international consumer trends), we expect investors will re-calibrate long-term member outlook and valuation expectations for Netflix and streaming media more broadly. We have lowered our 2022 and multi-year member and financial forecasts as summarized within and lower our 12-month price target to $555 from $720."

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