Caution won’t hurt with Netflix stock
2022.12.14 08:10
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Caution won’t hurt with Netflix stock
Budrigannews.com – Jefferies investigators raised the cost focus on Netflix (NASDAQ:) stock from $250 per share to $310 per share. They reiterated their Hold rating and offered cautious remarks regarding Netflix stock despite the raised price target, which indicates a potential downside of approximately 3%.
The most recent Netflix platform consumption data suggests that subs growth in Q4 could be “in-line to a miss” due to weakness in international markets. For both Q4 and Q123, analysts’ estimates are lower than the Street.
As AVOD is implemented and conversions take place, we gradually catch up. In a client note, they stated, “We are 7% above the Street by the end of 2024.”
By 2024, Jefferies anticipates that the introduced ad-tier’s advertising-based video on demand (AVOD) and incremental subscription video on demand (SVOD) members from password sharing will contribute approximately $6 billion to $7 billion in revenue.
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Overall, they advise the company’s clients to wait for a better entry point into Netflix stock and are “cautious into the quarter.”
The analysts came to the following conclusion: “We may be getting nuanced in our call, but if our model and view are correct – add in the uncertainty of the macro and impact to Netflix consumer sentiment with an ad tier – we believe we could get a better entry price on our long-term thesis.”
Yesterday, Netflix stock closed at $320.34, up 1.64 percent for the day.
