(CercleFinance.com) – Like a large number of analysts, Credit Suisse downgraded its recommendation on Netflix on Friday by sharply reducing its price target for the title, reduced from 740 to 450 dollars.
The broker explains that it has lowered its growth forecasts for the group following the announcement of a target of only 2.5 million net new subscribers for the current quarter.
By way of comparison, Credit Suisse expected to recruit 5.8 million net subscribers in the first quarter.
The broker, who is lowering his earnings estimates and his target, is worried that no growth vector is emerging on the group’s side, a phenomenon which makes him think that the activity should only grow by 13% this year, compared to +19% in 2021 and +24% in 2020.
Whether this slowdown is due to an unfavorable ‘post-pandemic’ effect, an increase in competition or the prospect of a penetration rate close to 100% within households, Credit Suisse believes that this lack of visibility justifies a more cautious approach and reduces its ‘outperformance’ rating to ‘neutral’.
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