Seaport Global Securities Downgrades Netflix (NFLX) to Neutral

Seaport Global Securities analyst David Joyce downgraded Netflix (NASDAQ: NFLX) from Buy to Neutral.

The analyst comments: "With recent announcements (with TF1) and industry speculation (with SPOT) around potential business-expanding conversations that NFLX may be having with incremental partners, there seems to be a new push at NFLX to capture more consumer media usage time that could reduce churn and increase LTV as well as advertising monetization. We are layering in greater price increases globally through 2030, and another ~40% to our advertising estimate by 2030 (which is now above the 'leaked' company aspiration of $9B for that year). We also expanded our margins, as layering on selective distribution deals as an aggregator could negate some of the need to compete and pay up for certain marquee content rights (including sports, like the NFL, if this strategy is eventually employed domestically). We are increasing our long-term valuation views, but the average of our approaches would suggest <10% upside from here (the 12-month-forward view). As such, we are downgrading our recommendation to Neutral from Buy ahead of the July 17 earnings release."

For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.

Shares of Netflix closed at $1297.18 yesterday.

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