(CercleFinance.com) – BofA Securities renewed its buy recommendation on Netflix on Friday, deeming the drop of more than 24% suffered by the title following the quarterly publication the previous day to be “exaggerated”.
If the streaming giant last night reported quarterly results broadly in line with expectations, its forecasts were largely disappointed, with only 2.5 million net new subscribers expected in the first quarter while the consensus was targeting 5.9 million. .
“We believe that this particularly weak forecast does not necessarily reflect a drastic slowdown in growth, but rather the inability of management to establish specific objectives,” tempers BofA this morning.
The intermediary explains that the abolition of free trial periods will mechanically weigh on the number of new subscriptions, a factor to which will be added the disappearance of the usual seasonality which characterized the activity.
‘We believe that the management team errs rather on the side of caution and that the outlook communicated for the first quarter is in fact much more conservative than aggressive,’ he concludes.
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