- The shares of Netflix Inc (NASDAQ: NFLX) have received a $295 price target from Citi. These are the details.
The shares of Netflix Inc (NASDAQ: NFLX) have received a $295 price target from Citi. And Citi analyst Jason Bazinet is maintaining a “Buy” rating on the shares.
Bazinet adjusted the rating while noting that after Netflix’s subscriber base started to contract, investors stopped viewing the firm as a growth stock. And given the lack of free cash flow, value investors are unsure how to assess the company.
Plus Bazinet pointed out that Netflix’s equity does not have a natural investor base. And Bazinet believes that Netflix has two options: 1.) Launch a lower-price advertising tier or 2.) Monetize account sharing.
An ad-based tier is expected to be launched in 2023. And this option would enable Netflix to resume subscriber growth and help narrow the $5 billion gap between free cash flow and net income. But monetizing account sharing is unlikely to improve beyond current levels, according to Bazinet.
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