© Reuters. Oppenheimer bullish on Netflix (NFLX) ahead of 4Q report
By Michael Elkins
Oppenheimer reiterated an Outperform rating on Netflix (NASDAQ:) and raised the price target to $400.00 (From $365.00) ahead of the company’s 4Q earnings release. The media streaming company is expected to report its 4Q results next week after the market closes on January 19th.
Besides subscriber metrics, Oppenheimer analysts believe that the stock will likely react to comments surrounding the progress of ad tier and new initiatives to reduce password sharing. They believe NFLX represents one of the best risk/reward profiles in Oppenheimer’s coverage, with the combination of password sharing crackdown, advertising ramp, and expected pullback in spending by competitors.
For the 4Q, Oppenheimer is forecasting net adds of 4.8 million vs. guidance/Street estimate at 4.5M, with revenue +2% y/y, largely in line with guidance/Street, and EBITDA $577M, same as Street.
Shares of NFLX are down 0.98% in pre-market trading on Friday.
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