Another analyst has boosted his estimates for Netflix (NASDAQ: NFLX) ahead of its earnings on July 19. Morgan Stanley analyst Benjamin Swinburne, while reiterating a Hold rating on the stock, expects the streaming giant to add 2.2 million subscribers in the second quarter. This compares to his prior estimate of 1.55 million due to “more modest churn” from paid sharing in the U.S. and Canada and “solid” app download trends.
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The analyst also adjusted his estimates about Netflix’s ad-supported tier and expects subscriptions to be around 30 million by the end of 2025, slightly lower than earlier estimates.
Swinburne stated in his note to investors, “In aggregate, we estimate Netflix will monetize 35 million new [households in the second half of 2023], through a combination of core net adds, extra members, and paid sharing net adds. After reviewing the extra member pricing, we are shifting more of our paid sharing benefit from extra members to net adds, especially in [U.S. and Canada].”
The analyst has raised his price target to $450 from $350, implying an upside potential of 2.7% at current levels.
Analysts are cautiously optimistic about NFLX stock, with a Moderate Buy consensus rating based on 19 Buys, 14 Holds, and two Sells.
