UPDATE: Citi Upgrades Netflix (NFLX) to Buy

January 31, 2022 4:56 AM EST
Get Alerts NFLX Hot Sheet
Price: $190.85 +5.03%

Rating Summary:
    25 Buy, 34 Hold, 8 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 20
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(Updated - January 31, 2022 5:40 AM EST)

Citi analyst Jason B Bazinet upgraded Netflix (NASDAQ: NFLX) from Neutral to Buy with a price target of $450.00.

The analyst comments "NFLX’s recent price weakness is likely driven by three factors. First, the 2.5m guide for net adds in 1Q22 disappointed the Street. Second, investor nervousness over the competitive environment as content spend accelerates across more players. Third, the margin headwinds (partially driven by a stronger USD) likely weighed on the equity. NFLX’s market multiplier has now compressed to only 1.1x even though investors typically view NFLX as possessing considerable pricing power. Conversely, we remain cognizant of NFLX’s FCF multiple which remains high at around 90x. And the dislocation between earnings and FCF (due to amortization of content costs). On balance, we think the prevailing equity value offers a compelling entry point, and we upgrade NFLX to Buy."

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 $384.36 yesterday.

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