Despite Subscriber Loss, This Bullish Netflix Analyst Says The Streaming Giant Poised To Lead The Pack

Despite Subscriber Loss, This Bullish Netflix Analyst Says The Streaming Giant Poised To Lead The Pack
  • Citi analyst Jason Bazinet raised the firm's price target on Netflix Inc NFLX to $305 from $275 and reiterated a Buy
  • He acknowledged that Netflix failed to add subscribers and only generated a fraction of FCF. 
  • However, Hollywood has a wide array of levers like ad tiers, bundling, and windowing to maximize revenues. Bazinet explored these levers for both Netflix and Disney. 
  • His analysis suggests Netflix has more opportunities to improve its free cash flow relative to Walt Disney Co DIS
  • Also Read: Netflix Reaching 40M AVOD Viewers By 3Q23? Skeptical Analyst Thinks It's Unlikely
  • Disney already sells advertising on Hulu and ESPN+, and Netflix's viewership per user is more significant than Disney's, allowing Netflix to lower prices more aggressively on the advertising tier. 
  • Further, Netflix may have opportunities to release films theatrically and license-produced content. 
  • Netflix is Bazinet's preferred way to express his bullish view on subscription video-on-demand. 
  • He expects SVOD sentiment to improve and also maintains a Buy on Disney.
  • Price Action: NFLX shares traded higher by 0.89% at $237.47 on the last check Friday.
  • Photo by Tumisu via Pixabay

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