CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
NFLX is realizing profitable growth in the video streaming market. We raise our EPS estimates in 2023 by $0.35 to $12.20 and ’24’s by $0.80 to $15.80; NFLX post Q3 2023 at $3.73, a $0.25 consensus beat. We lower our target to $485 from $520 using a forward TEV/EBITDA of 24.2x, well below historic averages. Even with the market dislocation in linear networks, we think NFLX is positioned to drive membership growth, higher revenue, and free cash flow (guidance raised to $6.5B from $5.0B in ’23). NFLX realized 8% Y/Y revenue growth in Q3 and expects to see higher revenue in Q4. We estimate total revenue at $33.6B in ’23 and $38.2B in ’24. By regions, NFLX grew UCAN +4% (44% of total revenue), EMEA +13% (33%), APAC +7% (11%), and LATAM +13% (12%). Net membership adds were +8.76M to 247.2M total, and average revenue per membership was up slightly. Operating margins were 22.4%, up 300 bps from a year ago. Content spend will be lower in ’23 at $13B and then normalized at $17B in ’24 with the actor strike over.