- Truist analyst Matthew Thornton lowered the price target on Netflix Inc (NASDAQ:NFLX) to $409 from $470 ahead of its Q1 results. The price target implied an upside of 17.5%.
- Thornton expects the company's Q1 subscribers to exceed expectations based on the mobile app downloads.
- However, the Q2 outlook will miss estimates as consensus paid member adds are a "slightly high hurdle" based on prior precedent.
- Thornton also kept a Hold rating on Netflix shares.
- Thornton viewed the valuation and risk-reward on the stock as "incrementally more favorable."
- Baird and Stifel also expressed caution ahead of its Q1 earnings, citing EMEA's churn risk due to potential consumer spending pressure tied to higher energy costs, broader inflationary pressures, and loss of subscribers in Russia.
- Price Action: NFLX shares closed lower by 2.21% at $348 on Monday.
