Netflix price target raised to $600 from $550 at Piper Sandler

Piper Sandler raised the firm’s price target on Netflix to $600 from $550 and keeps a Neutral rating on the shares. Heading into Netflix’s Q1 report, expectations feel elevated compared to the last few quarters, as sentiment has shifted from “better than feared” in Q3 to “how big is the beat” today, the analyst tells investors in a research note. The firm believes investors are looking for material upside to the 4.5M net subscriber additions number for Q1. The major areas of focus on the earnings call will be the balance of subscribers and average revenue per member over the next several quarters, the pace of scaling the advertising business, and margin expansion versus investments in growth areas, says Piper. It prefers to wait for a pullback in order to get more constructive on the shares.