Netflix: Credit Suisse remains on the sidelines.
(CercleFinance.com) - Credit Suisse maintains its "neutral" rating on Netflix, preferring to remain on the sidelines given a "balanced risk/reward" on the shares.
While the broker raises its revenue estimates for 2018, following the recent price hike, Credit Suisse points out that the video-on-demand company plans to increase content acquisition spendng to between 10.9 billion dollars and 12.4 billion dollars next year.
The broker says that this does not come as a surprise as the company looks to "pull the quality of its library further further away from its competitors in a bid to continue winning consumer engagement time."
However, its target price for the stock remains virtually unchanged, at 209 dollars compared to 210 dollars previously, as the increase in revenue is offset by higher content expenses.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
While the broker raises its revenue estimates for 2018, following the recent price hike, Credit Suisse points out that the video-on-demand company plans to increase content acquisition spendng to between 10.9 billion dollars and 12.4 billion dollars next year.
The broker says that this does not come as a surprise as the company looks to "pull the quality of its library further further away from its competitors in a bid to continue winning consumer engagement time."
However, its target price for the stock remains virtually unchanged, at 209 dollars compared to 210 dollars previously, as the increase in revenue is offset by higher content expenses.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.