Rosenblatt analyst Barton Crockett lowered the firm’s price target on Netflix to $540 from $554 and keeps a Neutral rating on the shares. Netflix’s Q1 featured strength, adding substantially more members than expected, accelerating revenue growth and beating margin guidance, the analyst tells investors in a research note. However, the firm says the report also included a development in disclosures, with new plans to stop disclosing subscribers and average revenue per member starting in Q1 of 2025. Rosenblatt says the news “looks like a transition into a more mature phase” and suggests that the member growth pace has peaked and will decelerate. The firm finds it less likely Netflix shares will outperform while the market digests this transition.
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