Oppenheimer bullish on Netflix (NFLX) ahead of 4Q report

Oppenheimer reiterated an Outperform rating on Netflix (NASDAQ: NFLX) and raised the price target to $400.00 (From $365.00) ahead of the company’s 4Q earnings release. The media streaming company is expected to report its 4Q results next week after the market closes on January 19th.

Besides subscriber metrics, analyst Jason Helfstein believes that the stock will likely react to comments surrounding the progress of ad tier and new initiatives to reduce password sharing. Helfstein believes NFLX represents one of the best risk/reward profiles in Oppenheimer’s coverage, with the combination of password sharing crackdown, advertising ramp and expected pullback in spending by competitors.

For the 4Q, Oppenheimer is forecasting net adds of 4.8M vs. guidance/Street estimate at 4.5M, with revenue +2% y/y, largely in line with guidance/Street, and EBITDA $577M, same as Street.

Shares of NFLX are down 0.98% in pre-market trading on Friday.

By Michael Elkins | [email protected]

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