Based on Netflix CFO commentary at a conference today, Pivotal Research lowered the firm’s Q4 revenue expectations and due to the on-going Hollywood strike, increased 2023 free cash flow estimates. The firm cut average revenue per user growth expectations from 4% to 2%, which reduces its Q4 revenue expectation from $8.89B to $8.73B. However, Pivotal feels comfortable with Netflix’s ability to grow by continuing to expand its content line-up and reiterates a Buy rating on the shares with a Street-high year-end 2024 price target of $600.
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