- Analysts expressed caution ahead of Netflix Inc (NASDAQ:NFLX) Q1 earnings, highlighting EMEA's churn risk, the company's second-largest region, due to potential consumer spending pressure tied to higher energy costs and broader inflationary pressures and loss of subscribers in Russia.
- Baird analyst William Power noted that each 10 bps increase in churn could negatively impact EMEA net additions by 200,000.
- Power maintained his Neutral rating and $420 price target (14% upside) on Netflix shares.
- Stifel analyst Scott Devitt lowered the price target on Netflix to $460 from $500 (24.9% upside) and kept a Buy.
- Devitt left his Q1 revenue estimates "largely unchanged" given that engagement data is tracking in line with his estimates and guidance.
- Devitt hardened his 2022 estimates and beyond due to a more conservative approach to the subscriber and ARPPU growth on worsening macro conditions and continued uncertainty.
- Price Action: NFLX shares traded lower by 3.17% at $356.66 on the last check Thursday.
