Monness analyst Brian White has maintained their neutral stance on NFLX stock, giving a Hold rating today.
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Brian White has given his Hold rating due to a combination of factors tied to Netflix’s current momentum and emerging risks. He acknowledges that Netflix has created a powerful entertainment platform, is benefitting from the removal of the Warner Bros. overhang, and is seeing an earnings boost from recent U.S. price increases. At the same time, he expects revenue growth to slow modestly from recent quarters, even as margins improve, and notes that the macroeconomic backdrop remains uncertain.
White also views the abandoned Warner Bros. bid as ultimately prudent, given the high acquisition cost and the integration risk for a company with limited experience in large-scale deals, even though the initial pursuit highlighted Netflix’s defensive posture in a competitive landscape. With the stock already having rallied strongly and trading at what he characterizes as a demanding valuation, he believes the upside is more limited relative to the risks, leading him to maintain a neutral, or Hold, stance on NFLX shares.
In another report released today, Rosenblatt Securities also maintained a Hold rating on the stock with a $96.00 price target.