Netflix (NFLX) PT Raised to $750 at Canaccord Genuity
Canaccord Genuity analyst Maria Ripps raised the price target on Netflix (NASDAQ: NFLX) to $750.00 (from $650.00) while maintaining a Buy rating.
The analyst commented, "Netflix reported strong Q3 results as subscriber growth came in above expectations thanks to an improved content slate (particularly in the APAC & EMEA regions), while operating margin was also well ahead of guidance. There is no better example of Netflix’s successful local language content strategy than Squid Game, the Korean thriller that came out of nowhere to become a viral global hit. Squid Game has been viewed by a record 142M households in the four weeks following its debut in late September, and we expect that Netflix will likely recognize a good portion of this benefit in Q4 given the timing of the release. The company’s Q4 subscriber outlook of 8.5M net adds was roughly in line with expectations, and the upcoming content slate includes the return of hit original series such as The Witcher along with highly anticipated original films like Red Notice, with heightened content spend contributing to lower profitability guidance. Netflix has also expanded its tests of mobile games in select European markets and announced the acquisition of Night School Studio to bolster its game development capabilities, reiterating that all game content will be included in subscriptions with no ads or in-game purchases to drive a better user experience. We continue to see Netflix’s robust pipeline of original titles and ongoing investments in diverse video and gaming content supporting strong subscriber growth and pricing power going forward."