In a current stock analysis, Andreas Schiller, an analyst at Raiffeisen Bank International AG, confirms the buy recommendation for Netflix shares (ISIN: US64110L1061, WKN 552484, ticker symbol: NFC, NASDAQ symbol: NFLX).
Netflix had a strong result in the third quarter of 2021. Not only were the expectations for the acquisition of new customers clearly exceeded, but also the profit development was clearly above the market consensus. The streaming giant owes this primarily to the newly published content, although the extremely successful series “Squid Game” was a real stroke of luck. Not only did the production costs of USD 21.4 million turn out to be quite manageable, Netflix itself put the value of the nine-part season at almost USD 900 million. In addition, the media attention not only attracted new customers, but Existing customers are also kept in mind which exclusive hits are on offer. However, this (exclusive) content dependency is not only a blessing, but also a curse at the same time, as the company will have to be measured by these successes in the future. In addition, previous content agreements would increasingly be dissolved due to intensifying competition and in the sense of marketed exclusivity (see “Star Trek” by Paramount + etc.) or at least drive up the licensing costs.
Even if the outlook for the year-on-year lower profitability in Q4 is unlikely to cause any joy, the outlook for the 8.5 million new customers in Q4 is at the previous year’s level and also signals that the content dry spell is likely to be over.
Andreas Schiller, analyst at Raiffeisen Bank International AG, sees further potential for the Netflix share in the future due to the continued very solid growth rates and the efforts of the management to round off the business model, which is why he is increasing his price target to USD 760 and at the same time his “buy” -Recommendation confirmed. The price target is based on a multiple approach, the numbers on consensus estimates and own estimates. (Analysis from November 17, 2021)
Please also note the information on the disclosure obligation in the event of conflicts of interest within the meaning of Directive 2014/57 / EU and corresponding EU regulations for the aforementioned analyst company:
Disclosure of circumstances and interests that could jeopardize the objectivity of RBI: www.raiffeisenresearch.com/disclosuresobjectivity
Stock exchanges Netflix share:
Tradegate share price Netflix share:
612,50 EUR +0,79% (17.11.2021, 16:40)
NASDAQ share price Netflix share:
691,89 USD +0,65% (17.11.2021, 16:41)
WKN Netflix Promotion:
Short profile Netflix Inc .:
Netflix Inc. (ISIN: US64110L1061, WKN 552484, ticker symbol: NFC, NASDAQ symbol: NFLX) is a US video provider that is one of the world’s leading providers in this field with its portfolio of TV series and films. The company offers its customers an Internet subscription service that allows unlimited TV programs and films to be streamed online. The offer originally only extended to the American home market, but has also been expanded in other countries and regions such as Canada, Ireland, Latin America and the Caribbean since 2010.
In the USA, the group also offers the rental of DVDs and Blu-rays and delivers them to your home by post. Netflix customers can choose their preferred programs, films and series from a comprehensive selection and play them on televisions, computers, mobile devices, Apple TV or the XBOX 360, PS3 and Wii game consoles. The licenses for the available formats are acquired from production and sales companies and then made available to customers via the website www.netflix.com. (17.11.2021 / ac / a / n)
Disclosure of possible conflicts of interest:
You can view potential conflicts of interest on the site of the creator / source of the analysis.