Netflix Worth $85, MoffettNathanson Analyst Says

MoffettNathanson’s Michael Nathanson maintained a Neutral rating for Netflix, Inc. NFLX, while reducing the price target from $98 to $85. The company announced “relativity weak” domestic subscriber guidance for 1Q. This may indicate that 60 million subscribers “is an upper bound."

Nathanson added that while domestic contribution margins are likely to exceed 40 percent, beating the target, “the shifting of content spending to new markets will depress international margins." The view of the stock has turned from being invincible to concerning.