Netflix: subscriber weakness 'temporary', Canaccord says

(CercleFinance.com) - Canaccord Genuity maintains its "buy" rating on Netflix, with a price target of 415 dollars, saying the company's subscriber weakness in the second quarter is likely to be "temporary".


In a note to clients, the Canadian brokerage firm concedes that Netflix reported "mixed" second-quarter results.

"On one hand, subscriber net adds missed guidance and our estimates noticeably, including a somewhat unexpected sequential decline in domestic subs", it said.

"On the other, revenue growth accelerated for the second straight quarter, and third-quarter subscriber growth should accelerate on international strength", it noted.

According to Canaccord, however, a strong content strategy and room to add large numbers of international subs are key strengths going forward.

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