UPDATE: Netflix (NFLX) Post Covid Hangover Drives Piper Sandler to Downgrade to Neutral

Piper Sandler analyst Thomas Champion downgraded Netflix (NASDAQ: NFLX) from Overweight to Neutral with a price target of $293.00 (from $562.00) after 1Q22 subscriber net adds of (0.2MM), or +0.5MM ex-Russia, badly missed guidance of 2.5MM.

The analyst stated "Management tone was subdued and comments point to a host of issues impacting the go-forward sub trajectory including macro, CTV adoption, password sharing and competition. Sub losses continue into 2Q and revenue growth will be lower, likely into '23. While password sharing is being addressed and a new ad-supported tier sounds viable, we substantially lowered sub adds forecasts for '22/'23. It's a lower growth, lower visibility model, prompting us to move to the sidelines."

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 $348.61 yesterday.

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