Netflix, Inc. Offers Great Value Product But Still Is A Sell: Analyst

0
Netflix, Inc. Offers Great Value Product But Still Is A Sell: Analyst
NFLX Photo by Matt Perreault

Netflix is a well-managed company, and its product is of great value to the consumers, believes Wedbush Equity analyst Michael Pachter. However, the analyst still maintains a Sell rating on the company’s stock.

Netflix potential already discounted in

Pachter believes investors have given too much credit to Netflix for its ability to “thrive in that future world where we all ‘cut the cord’ and consume content” over the Internet.”

[Exclusive] DG Value Underperforms In H1, Sees Growing Number Of Distressed Opportunities

Dov Gertzulin's DG Capital has had a rough start to the year. According to a copy of the firm's second-quarter investor update, which highlights the performance figures for its two main strategies, the flagship value strategy and the concentrated strategy, during the first half of 2022, both funds have underperformed their benchmarks this year. The Read More

According to Pachter, the streaming company will continue to be profitable, but the market has “discounted too deeply the potential for competition” as well as the desire for content owners to “extract as much economic rent [as possible] from providers like Netflix.”

However, other analysts differ from Pachter and are positive on the stock. Cantor analyst Youssef Squali increased his price target from $450 to $500. Another analyst, Paul Vogel from Barclays, also raised his price target from $400 to $450 for the next 12 months.

Others bullish on Netflix

Squali, who maintains a Buy rating on Netflix, stated that the recent trend around TV un-bundling is a primary factor for h