In a report released today, Jason Bazinet from Citi maintained a Hold rating on Netflix (NFLX – Research Report), with a price target of $1,020.00.
Jason Bazinet has given his Hold rating due to a combination of factors surrounding potential tariff impacts on Netflix. President Trump’s proposal of a 100% tariff on content produced outside the US could significantly affect Netflix’s earnings per share, potentially reducing it by around 20% or $6 per share under a worst-case scenario. However, Netflix has several strategies to mitigate these risks, such as relocating production to the US, limiting US access to foreign-produced content, or increasing prices to offset higher production costs.
Despite the initial negative market reaction, with Netflix’s equity dropping by 5%, Bazinet believes the actual impact will be less severe than the worst-case scenario. The expected share price return is projected at -11.8%, reflecting these uncertainties and potential cost increases. Therefore, while there are challenges, Netflix’s ability to adapt and manage these risks justifies a Hold rating.
In another report released on April 22, Goldman Sachs also maintained a Hold rating on the stock with a $1,000.00 price target.
Based on the recent corporate insider activity of 175 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NFLX in relation to earlier this year.