Netflix (NFLX) Sub Cyclicality Will Likely Return in 2022 - Rosenblatt

Rosenblatt analyst Mark Zgutowicz reiterated a Neutral rating and $450.00 price target on Netflix (NASDAQ: NFLX) on the belief that 2H net add expectations of +12-13M will be met, largely bouyed by Squid Game's global viewership tailwind of 115M+ since the Sep. 17 release. However, this strength is expected to be transitory.

He stated "Aside from Squid gains, Netflix saw minimal content competition alongside its relatively strong 2H slate. We expect sub cyclicality to return in CY22E --which we got a taste of in 1H21-- with stronger SVOD slates and simply a higher bar for Netflix relative to 2H21. Futher we believe the stock is anticipating a higher '22 sub trajectory than the Street's +24M, which we come in ~3M below. More broadly, we continue to believe Netflix's all you can binge policy is its Achille's heel, limiting scale of its content spend and further weakening its competition positioning."

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 $628.29 yesterday.

You May Also Be Interested In

• Needham Upgrades Netflix (NFLX) to Buy, 'on Rev Upside from Tech Stack'
• Alpine Income Property Trust (PINE) PT Lowered to $18 at Jones Trading
• Netflix (NFLX) PT Lowered to $540 at Rosenblatt