Wells Fargo Upgrades Netflix (NFLX) to Overweight, 'More Ways to Win'
- Wall Street ends down after stunning jobs growth raises Fed questions
- Elon Musk wins 'funding secured' trial
- U.S. nonfarm payroll growth blows past forecasts in January, up 517k
- Analysts defend Apple (AAPL) as earnings miss drags shares lower
- Amazon (AMZN) drops after earnings, analysts worried about AWS uncertainty
Wells Fargo analyst Steven Cahall upgraded Netflix (NASDAQ: NFLX) from Equal Weight to Overweight with a price target of $400.00 (from $300.00).
The analyst comments "Positive catalyst path in 2023, led by lower churn and stable subs. Looking back, with competition increasing and content growth slowing, the pieces were there for tougher NFLX performance in 2022. Looking at the same mosaic, we see scope for the KPIs to exceed in 2023, and NFLX is still down by about half YTD vs the S&P500 -17%. Content is clearly improving with MAUs/DAUs up 6%/9% y/y in our latest monthly data scrub as content starts to hit. We think the pull-forward from COVID is now mostly digested, with global connectivity still providing a long-term tailwind of ~+8mm net adds annually before any penetration increase. We see churn improving in '23 due to content + AVOD + paid sharing, and 10bps of churn = ~10mm subs. So, we feel better on subs, while ads drive us ahead on revenues."
Shares of Netflix closed at $310.26 yesterday.
You May Also Be Interested In
- Wells Fargo cuts SLM Corp. (SLM) as credit issues persist
- Jubilant Foodworks Ltd (JUBI:IN) PT Lowered to INR500 at Credit Suisse
- Centuria Office REIT (COF:AU) PT Lowered to AUD1.89 at Credit Suisse
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Comments, Hot Upgrades, Upgrades
Related EntitiesStandard & Poor's, Wells Fargo
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!