Netflix: Wedbush stays 'underperform', ups target
(CercleFinance.com) - Wedbush Securities reiterates its "underperform" rating on the Netflix stock while raising its target price from 150 dollars to 165 dollars, after the company once again delivered solid quarterly numbers.
However, the US broker says it expects that the overall quality of Netflix's content to suffer over the next two years.
According to Wedbush, the recent price increase is bringing "more logs" for what it calls a "cash bonfire".
"Notwithstanding four Netflix price increases in the last five years, cash burn continues to grow," the broker laments.
"International profits may remain elusive due to competition for content and subs, and future content migration and price hikes could cause a deceleration in subscriber growth," it warns.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
However, the US broker says it expects that the overall quality of Netflix's content to suffer over the next two years.
According to Wedbush, the recent price increase is bringing "more logs" for what it calls a "cash bonfire".
"Notwithstanding four Netflix price increases in the last five years, cash burn continues to grow," the broker laments.
"International profits may remain elusive due to competition for content and subs, and future content migration and price hikes could cause a deceleration in subscriber growth," it warns.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.