Netflix Receives a Hold from Aegis Capital

By Carrie Williams

In a report issued on April 13, Victor Anthony from Aegis Capital maintained a Hold rating on Netflix (NASDAQ: NFLX), with a price target of $230. The company’s shares closed on Friday at $311.65, close to its 52-week high of $333.98.

Anthony wrote:

“We project 1.65M and 6.0M Domestic and International net additions, respectively, for a total of 7.65M net adds (vs. 8.3M in 4Q17). We expect Netflix to report results above our estimates but guide conservatively, or cautiously, for 2Q. 1Q subscriber net additions should be driven by Jessica Jones, Altered Carbon, partnerships with Altice, T-Mobile DT, Cox, and Verizon (low churn subs), a continuation of the appeal of The Crown, Bright, and Stranger Things from 4Q17, in addition to increased marketing spend and overall secular trends of media viewership shifting to the Internet. 2Q18, is up against a tough YoY content slate compare, which should lead to a less robust guide. For 2Q18, we project 1.5M Domestic net additions and 5.5M International net additions. The stock, in our view, continues to respond to subscriber outperformance and guidance and we are unlikely to see significant strength in the latter.”

According to TipRanks.com, Anthony is a top 100 analyst with an average return of 17.0% and a 67.2% success rate. Anthony covers the Services sector, focusing on stocks such as Qurate Retail Group Inc, Pandora Media, and Cimpress.

Currently, the analyst consensus on Netflix is Moderate Buy and the average price target is $311.52, representing a 0.0% downside.

In a report issued on April 2, Robert W. Baird also reiterated a Hold rating on the stock with a $280 price target.

Based on Netflix’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $3.29 billion and quarterly net profit of $186 million. In comparison, last year the company earned revenue of $2.64 billion and had a net profit of $178 million.

Based on the recent corporate insider activity of 95 insiders, corporate insider sentiment is negative on the stock. Most recently, in February 2018, Jay Hoag, a Director at NFLX sold 9,107 shares for a total of $2,433,117.

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