KeyBanc expects Netflix shares may be more range-bound near-term

KeyBanc maintains a Sector Weight rating on Netflix and expects shares may be more range-bound near-term given signs of more variability in the growth algorithm for the second half of 2023 and 2024. The firm’s forecast now calls for 7%/11% year-over-year growth in 2023/2024, which is arguably below expectations for bulls. In KeyBanc’s view, multiple expansion from current levels more proof points around paid-sharing manifest and the arc of normalized net add growth becomes clear.