UPDATE: Netflix (NFLX) PT Lowered to $500 at Stifel

(Updated - January 21, 2022 6:44 AM EST)

Stifel analyst Scott Devitt lowered the price target on Netflix (NASDAQ: NFLX) to $500.00 (from $660.00) while maintaining a Buy rating.

The analyst comments "Netflix reported mixed 4Q results with +8.3mm net adds, just below its guidance / consensus for +8.5mm. It noted engagement levels were elevated with both viewership and retention up, likely due to a robust content slate; however, management indicated acquisition growth has slowed. As a result, Netflix expects net adds of +2.5mm in 1Q, materially below consensus of +5.9mm. Given the softer-than-expected 1Q guide, and uncertainty around when/if acquisition growth will return to pre-pandemic levels, we are tapering our near-term forecasts and our PT falls to $500 (from $660) as a result. However, we maintain our Buy rating on NFLX shares as we continue to view it as the best-positioned asset in the space with ample headroom to capture market share, execute on its strategic initiatives, and deliver consistent margin expansion and FCF generation as a result of content-spend leverage and the maturing nature of the business."

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