shares of Netflix Inc NFLX surged Tuesday after the market close following the streaming giant reported third quarter Financial stocks beating analysts’ expectations.
The Street shares updated thoughts on what Netflix has in store as it works to return to growth and launch its ad-supported platform.
The Netflix Analysts: Credit Suisse analyst Douglas Mitchelson has given Netflix a neutral rating and raised its price target to $271 from $263.
Benchmark analyst Matthew Harrigan has a sell rating and raised the price target to $162 from $157.
Morgan Stanley analyst Benjamin Swinburne has an equal weight rating and has raised the price target to $250 from $230.
Raymond James analyst Andrew Marok has a market perform rating and no target price.
Rosenblatt analyst Barton Crockett has a neutral rating and has raised the price target to $226 from $201.
KeyBanc analyst Justin Patterson has a sector weight and no target price.
Bank of America analyst Nat Schindler has an underperform rating and a price target of $196.
Related link: Here’s how much Netflix’s ad-supported plan costs and how it compares to its competitors
The Netflix takeaways: Mitchelson was impressed by the fourth-quarter guidance of 4.5 million net additions versus a Credit Suisse estimate of 4.3 million. The analyst was cautious about commenting on the ad-supported plan, which will launch in November.
Mgmt stated that they expect the new ad tiers to be neutral to positive versus comparable base tier ARPUs, indicating the potential for dilution compared to average ARPUs at the base/standard/premium tiers ‘ Mitchelson said.
Mitchelson said comments from Netflix point to a modest inflow of subscribers for the ad-supported plan at launch, leaving the analyst with a 10% revenue growth target unclear.
Harrigan, who has a sell rating, is wary of being too bullish on Netflix after shares rose 14% in the earnings report.
“We remain cautious on Netflix, despite the 14% surge in shares following its IPO in…
