- Benchmark analyst Matthew Harrigan maintained a Sell rating on Netflix, Inc NFLX while increasing the price target to $225, up from $162.
- Harrigan remained cautious on Netflix in the wake of yesterday's near 9% stock sell-off in reaction to a Digiday article that indicated non-accomplishment of viewership guarantees to advertisers and permitting ad buyers to withdraw money for ads that have not yet run or rolling commitments into 2023.
- Benchmark's digital media team feels the advertising launch was rushed with unrealistic, above-peer pricing and certainly limited testing, not to mention a limited immediate AVOD user base.
- The rapid launch was an apparent reaction to gathering AVOD market momentum, issues with global member growth, and even NFLX's below-peer churn despite current high-profile shows.
- The Digiday article indicated that Netflix delivered only 80% of the guaranteed audience, with clients only paying for actual eyeballs.
- Harrigan still expects Netflix to generate significant global growth. However, the broader gamut of programming, including sports supporting The Disney Bundle and Amazon Prime, is a disadvantage for Netflix despite its entrenched position as the scripted content volume leader.
- Antenna estimates that the 3Q22 monthly churn at Netflix increased to 3.5% from 3.4% in 2Q22 and a meager 2.0% in Covid-stricken 2021.
- The price target change reflected largely off pushing the time frame to 2023, allowing an S&P 500 relative discounted cash flow valuation through 2027 versus 2025 formerly.
- Price Action: NFLX shares traded higher by 0.70% at $292.45 on the last check Friday.
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NFLXNetflix Inc
$1158.001.79%
Edge Rankings
Momentum
96.40
Growth
69.93
Quality
86.21
Value
11.53
Price Trend
Short
Medium
Long
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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